Crypto Industry Bands Together To Demand Clear Betting Market Laws

A new, organized push is under way to shape how crypto prediction markets are treated in the US. A blockchain advocacy group has launched a unit aimed at guiding policy, pressing regulators, and backing industry players through legal fights and public research.

Industry Sets Legal Strategy

According to the group’s announcement, the first move was a letter praising the Commodity Futures Trading Commission and its chair for arguing that federal oversight should cover many event contracts.

The Prediction Markets Working Group, created by the blockchain advocacy group, The Digital Chamber, called for clearer rules and an end to what it described as enforcement-first regulation.

The group plans to meet with regulators, file policy ideas, publish studies and join court fights through friend-of-the-court briefs to press its view that a single federal regulator should be the lead voice on these crypto markets.

The regulator’s recent public comments were framed as support for that approach. CFTC Chairman Mike Selig has said the agency has overseen similar contracts for many years, and industry backers see that as a foundation for wider federal authority.

Tests On The Ground

Reports note that litigation and enforcement are already testing the theory. A major crypto US platform was hit with state action this week, accused of offering unlicensed wagering.

Kalshi faces a civil case brought by a state gaming regulator seeking to stop certain markets that the regulator calls gambling.

Rival platforms have felt the squeeze too; one has moved to federal court to try to head off state bans. Polymarket sued a state to argue federal oversight takes precedence.

The platforms argue their contracts behave like derivatives and should be treated as such, while state officials keep saying these products look a lot like bets.

States Push Back

That tension is clear along state lines. Nevada Gaming Control Board, which enforces strict gambling rules in its jurisdiction, has been among the most aggressive.

Reports say a governor in another state called these markets gambling that harms people, signaling political heat. Utah Governor Spencer Cox criticized federal arguments and framed the issue as one of public safety.

Meanwhile a platform chose to take its fight to the federal courts in a state that has been moving toward enforcement. Massachusetts figures into that legal push.

What Comes Next

The next stretch will likely be shaped by filings and court rulings as much as by rulemaking. Industry lawyers are preparing to press federal primacy; state officials are planning to press their gambling statutes.

Legal briefs and amicus filings will try to persuade judges about what these crypto contracts really are. Regulators could also respond with formal rule proposals, and those would change the tone of the debate.

Featured image from The Center for Public Justice, chart from TradingView