The Digital Chamber has launched a Prediction Markets Working Group to advocate for clearer US regulation and reinforce federal oversight of the sector.
The group’s first move was to send a letter to Commodity Futures Trading Commission chairman Mike Selig, praising his stance that the agency should retain primary jurisdiction over prediction markets.
“In our letter, we applauded Chair Selig’s recent statements regarding the intent for CFTC staff to provide tailored rulemaking and guidance for this rapidly growing segment of the financial and digital asset industries,”
The Digital Chamber said.
The advocacy body argued that operators have long faced regulatory ambiguity due to overlapping federal and state oversight, and pledged to submit policy recommendations, publish research and participate in litigation through friend-of-the-court briefs.
The initiative comes as Kalshi faces a civil enforcement action from the Nevada Gaming Control Board seeking to halt what it calls unlicensed wagering, while Polymarket has filed a federal lawsuit against Massachusetts to block potential state enforcement.
Selig recently reiterated that:
“Prediction markets aren’t new — the CFTC has regulated these markets for over two decades,”
Warning states against challenging federal authority.
Utah Governor Spencer Cox criticised the CFTC’s position, describing prediction markets as gambling and signalling willingness to contest federal oversight in court, underscoring intensifying legal and political tensions around the sector.