Clarity Act vote delayed until September by US Senate

The US Senate has chosen to postpone its vote on the Clarity Act until lawmakers return from an August recess in mid-September, with the legislation potentially set to alter the regulatory framework of prediction markets.

While the Clarity Act primarily seeks to establish a regulatory framework for cryptocurrencies and digital assets, US lawmakers and Tribal representatives such as Indian Gaming Association (IGA) Chairman David Bean have previously advocated for changing the legislation to restrict prediction market offerings. 

Those opposed to the Clarity Act’s current language hope to prohibit prediction market platforms such as Kalshi and Polymarket from offering sports-related event contracts outside of existing state and Tribal gaming regulations.

Chairman Bean testified before a US House Agricultural Subcommittee in Washington DC, where he discussed the “significant concerns” prediction markets could pose for Tribal gaming.

On January 13, Chairman Bean and American Gaming Association (AGA) President and CEO Bill Miller issued a joint letter to US lawmakers, urging them to take action against unregulated prediction market offerings.

“These contracts are being offered in flagrant disregard of state laws, Tribal sovereignty, the Commodity Exchange Act and CFTC regulations. They mislead consumers into believing that a sports bet is an investment, fail to protect the young and the vulnerable, open the door to money laundering, match fixing and insider trading,” Miller and Chairman Bean said. 

“They rob state budgets and Tribal finances while simultaneously forcing states and Tribes to expend massive legal resources to defend their sovereignty.”

Senate Majority Leader John Thune confirmed the vote will take place once the August recess has concluded, with 60 votes required to advance the legislation prior to the Midterm elections starting in November. 

If approved by the US Senate, the Clarity Act would require a final successful vote in the House of Representatives before reaching President Donald Trump’s desk to sign into law.