Former CFTC Chair: After the Clarity Act stalls, crypto regulation urgently needs more durable rules; the Supreme Court may define prediction market boundaries

According to Crypto in America, former CFTC Chair Russ Behnam stated at the Georgetown University conference on financial market quality that as prediction markets experience explosive growth, Congress urgently needs to clarify the boundary between risk management and gambling, with related litigation potentially ultimately reaching the U.S. Supreme Court. Behnam also noted that after the Clarity Act failed to advance in the Senate, relying on existing authority to regulate the spot market leaves the CFTC effectively “patching things together with tape and paperclips,” and regulators urgently need to establish more durable rules.