U.S. gambling industry groups call for explicit ban on sports prediction markets in cryptocurrency legislation

TechFlow News, June 17: According to The Block, the American Gaming Association (AGA), the National Indian Gaming Association, and other industry groups jointly sent a letter to the U.S. Senate urging explicit prohibition in the market structure legislation for digital assets—the “Clarity for Digital Assets Act”—of prediction market contracts tied to sporting events and casino-style games. The letter states that such platforms circumvent state and tribal laws by branding themselves as “federally regulated financial products,” thereby weakening consumer protections and posing risks to young users. It further emphasizes that the Commodity Futures Trading Commission (CFTC) is not the appropriate regulator for sports betting. The “Clarity for Digital Assets Act” has already passed the Senate Banking Committee and will next proceed to a full Senate vote.