Digital Chamber Launches Prediction Markets Working Group
Blockchain industry advocacy group The Digital Chamber has established the Prediction Markets Working Group to support the prediction markets sector and advance regulatory clarity in the United States, according to an announcement on X on Tuesday. The initiative outlines a multi-year plan aimed at clarifying what it describes as a misunderstood area of finance.
The group’s first step was to send a letter to Commodity Futures Trading Commission (CFTC) chair Mike Selig, commending recent indications that CFTC staff intend to develop tailored rules and guidance for this growing segment of financial and digital asset markets, while also urging a move away from regulation by enforcement. The Digital Chamber said operators have faced prolonged uncertainty due to unclear overlaps between federal and state oversight.
Next, the working group plans to continue engagement with the CFTC, draft policy principles, submit policy recommendations, publish research, and assemble a coalition of industry stakeholders. It also expects to participate in litigation through friend-of-the-court briefs to inform courts about what it considers the CFTC’s longstanding exclusive regulatory remit over the sector.
Prediction markets move into the courts
The launch comes amid heightened scrutiny from state authorities. On Tuesday, the Nevada Gaming Control Board filed a civil enforcement action against Kalshi, seeking an injunction to halt what it alleges is unlicensed wagering in the state. Kalshi and rival Polymarket have each faced efforts by multiple state regulators to stop them from offering markets, including sports-related contracts, on the basis that they constitute unlicensed gambling products.
Last week, Polymarket filed a federal lawsuit against the state of Massachusetts seeking to preempt potential enforcement, arguing that the CFTC holds primary oversight of the sector rather than state governments.
The CFTC chair has recently urged states to respect the Commission’s authority over prediction markets or face potential legal challenges. In a video posted to X on Monday, Selig said the CFTC has regulated such markets for more than two decades.
Utah Governor Spencer Cox responded on Tuesday that he would welcome possible legal disputes with the CFTC, characterizing prediction markets as gambling that is harming Americans and questioning the agency’s authority over contracts such as those tied to LeBron James’ rebounds.
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