IGA urges Senate to reject Clarity Act without Tribal safeguards

The Indian Gaming Association has called on the US Senate to reject the Digital Asset Market Clarity Act unless lawmakers add explicit protections for Tribal sovereignty and established gaming regulation.

The Clarity Act is primarily intended to create a federal framework for digital assets and clarify the respective jurisdictions of the Securities and Exchange Commission and Commodity Futures Trading Commission.

However, the IGA argues that its current language could allow prediction-market operators to offer sports betting and casino-style products under federal commodities law, bypassing Tribal and state gaming frameworks and the Indian Gaming Regulatory Act.

The Association has asked Congress to state expressly that federal commodities legislation does not preempt Tribal, state or other federal gaming laws. It also wants designated contract markets prohibited from listing event contracts involving sports betting or casino games.

Senator Cynthia Lummis recently released revised legislative language after concerns were raised by the gaming, credit union and decentralised-finance sectors. IGA Chairman David Bean acknowledged that the revisions addressed some industry concerns but said they did not resolve the Association’s central objections.

Bean argued that the proposal would expand CFTC authority without limiting sports and casino-related prediction markets. These claims represent the IGA’s interpretation of the legislation and its potential regulatory consequences rather than a finding by Congress or a court.

The Association is urging member Tribes and Tribal leaders to ask senators to oppose cloture and passage of the bill in its current form. It says Tribal gaming supports government services including healthcare, education, housing, infrastructure, public safety and economic development.

The Senate previously delayed consideration of the Clarity Act until lawmakers returned from their August recess.

The IGA and American Gaming Association have also jointly urged Congress to prohibit federally registered prediction-market platforms from offering sports betting and casino-style event contracts outside established state and Tribal regulatory systems.