The post Digital Chamber Pushes CFTC Oversight for Prediction Markets appeared on BitcoinEthereumNews.com.

The Digital Chamber launched a working group to defend CFTC oversight of prediction markets. State regulators have intensified legal action against Kalshi and Polymarket. Courts may decide whether prediction markets fall under federal derivatives law or state gambling rules. The Digital Chamber has launched a new Prediction Markets Working Group to strengthen federal oversight of the sector in the United States. The blockchain advocacy group aims to secure regulatory clarity and reinforce the Commodity Futures Trading Commission’s authority over event-based contracts. The organization announced the initiative on X and outlined a multi-year strategy to shape policy. It described prediction markets as a misunderstood segment of finance that needs structured rulemaking rather than enforcement-driven actions. Letter to CFTC Chair Signals Federal Push The first official letter was sent to CFTC Chairman Mike Selig by the Digital Chamber of Commerce. The group welcomed Chairman Selig’s recent statements in support of tailored guidance for prediction markets. They urged the agency to maintain its primary jurisdiction and avoid regulatory duplication with state authorities. The organization argued that companies in the sector face confusion due to conflicting state and federal rules. It emphasized that the CFTC has regulated event contracts for more than two decades. The working group plans to draft policy principles, publish research, and build a coalition of stakeholders to support federal oversight. The group also intends to participate in litigation through friend-of-the-court briefs. It wants to educate courts about what it views as the CFTC’s historic regulatory exclusivity over prediction contracts. State Enforcement Actions Escalate State regulators have increased pressure on major platforms. The Nevada Gaming Control Board recently filed a civil enforcement action against Kalshi. Regulators want to block the company from offering contracts that they classify as unlicensed wagering products. Polymarket has faced similar scrutiny. Massachusetts officials have questioned its…

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Filed under: News - @ February 18, 2026 10:25 am