Last updated on March 8th, 2026 at 03:51 pm
Blockchain advocacy organization The Digital Chamber has launched a new initiative aimed at shaping policy around prediction markets in the United States, as legal and regulatory tensions surrounding the sector continue to grow.
In a statement shared on X on Tuesday, the group introduced its new Prediction Markets Working Group, describing it as a long-term effort to bring clearer rules and stronger federal guidance to what it called a misunderstood area of modern finance. As an initial step, the organization sent a letter to CFTC Chair Michael Selig, praising recent comments supporting tailored rulemaking instead of enforcement-driven regulation.
4/4 Focusing exclusively on shaping durable and responsible policy and regulation, our Prediction Markets working group looks forward to working closely with the CFTC, Congress, and market participants. Full statement: https://t.co/p9T7pP7e6r
— The Digital Chamber (@DigitalChamber) February 17, 2026
The Digital Chamber sets up advocacy group
The advocacy group argued that companies operating prediction markets have struggled with overlapping oversight between federal agencies and individual states, creating uncertainty for firms trying to comply with existing laws. It said future plans include engaging directly with regulators, publishing policy research, and participating in court cases through friend-of-the-court filings to reinforce what it views as the CFTC’s long-standing authority over the sector.
The CFTC chair recently emphasized that event contracts and prediction markets have been under federal derivatives oversight for years, signalling the agency’s willingness to defend that jurisdiction as the debate intensifies.
State regulators clash with platforms as legal battles escalate
The launch comes as prediction market operators face mounting legal pressure from state regulators who argue many of these markets function more like gambling products than financial instruments.
Nevada’s gaming regulator has filed a civil enforcement action against Kalshi, seeking to block the company from offering sports-related contracts in the state. Officials argue such offerings require gaming licenses under state law, while the company maintains that federal derivatives regulation gives the CFTC primary oversight.
At the same time, Polymarket has moved to federal court to challenge potential enforcement actions from state authorities, arguing that a patchwork of state-level rules would undermine a unified national market.
The dispute has drawn reactions from political leaders as well. Spencer Cox publicly criticized prediction markets as gambling, setting the stage for a broader debate over whether these platforms should be treated as financial derivatives or wagering services.
Enjoyed this piece? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
