The Commodity Futures Trading Commission faces potential increases in responsibilities for overseeing prediction markets as Congress considers the Digital Asset Market Clarity Act.

A House Agriculture Subcommittee hearing on July 21 examined customer protection and market integrity in event contracts, including sports predictions. Former CFTC lawyer Carl Kennedy testified that the agency may require additional resources to manage its current workload alongside expanded digital asset duties.

Trading volume in CFTC-registered prediction markets surpassed $25 billion in 2025. Average daily event contract listings on one platform increased from about 1,600 in April 2025 to roughly 162,000 in April 2026.

The Commodity Exchange Act already provides a framework for regulating such contracts on registered exchanges, covering surveillance, financial integrity and manipulation prevention. State regulators have challenged platforms such as Kalshi and Polymarket, leading to ongoing court disputes over federal versus state jurisdiction.

The CLARITY Act would assign the CFTC greater authority over digital commodity markets while clarifying oversight divisions with the Securities and Exchange Commission. The bill advanced from the Senate Banking Committee in May but awaits final negotiations and a floor vote.

The legislation’s progress coincides with the CFTC’s efforts to finalize rules for event contracts and defend its position in legal proceedings. Adequate staffing and funding will determine the agency’s capacity to handle these combined demands.