Crypto news

The largest U.S. gambling associations — AGA, IGA, and AGEM — have joined forces and sent a tough demand to the Senate: ban prediction markets related to sports and gambling as part of the upcoming cryptocurrency regulation bill, the CLARITY Act. This is not just a lobbying move — it is a direct attack on the growing decentralized betting sector.

The essence of the complaints is simple and cynical: according to the gambling industry, platforms like Polymarket and Kalshi disguise ordinary bets as financial derivatives, thereby bypassing local laws, taxes, and consumer protection obligations. The associations argue that the Commodity Futures Trading Commission (CFTC) simply lacks the resources to oversee this "gray" betting.

The lobbyists' key argument: "Congress must clearly state that sports betting is not within the CFTC's jurisdiction and cannot be offered through prediction markets." Essentially, they demand to wrest this tool from the crypto industry's hands and return it to the control of traditional operators.

The situation is heating up as the CLARITY Act has already passed a key vote in the Senate Banking Committee. If the amendment passes, it will be a serious blow to the entire sector. For context, trading volumes on Kalshi reached $16.8 billion in May, and on Polymarket — $7 billion. This is no longer a hobby, but a massive market.

Notably, Indonesia has already taken the path of prohibition: officials equated Polymarket to an online casino and blocked the platform. The U.S. will likely follow suit, but with far more severe consequences for the entire industry.

Expert commentary from Cryptalist: This conflict is a classic battle of old capital against new. Gambling giants fear not so much the "illegality" of bets as the loss of their monopoly on sports betting. If the CFTC yields to pressure, we will see not just a ban, but a market reshuffling — with platforms likely moving offshore. Investors should prepare for high volatility in tokens associated with prediction markets.