Tribal Gaming Group Opposes Crypto Regulatory Bill - Poker News

The Indian Gaming Association (IGA) announced it opposed a federal bill to regulate the cryptocurrency industry.

On the surface, the stance seems strange. But the bill gives more power to the Commodity Futures Trading Commission (CFTC). And the tribes view that as a threat in the current legal battle regarding prediction markets.

The Digital Asset Market Clarity Act would allow the CFTC to regulate certain crypto transactions. The bill is meant to create a clear rulebook for cryptocurrencies and digital assets. Additionally, the bill creates rules for decentralized finance (DeFi) applications.

Sen. Cynthia Lummis (R-WY) sponsored the bill. Lummis is the chair of the Senate Banking Electronic Assets Subcommittee and a longtime supporter of cryptocurrency regulation.

The IGA opposes a carve-out in legislation aimed at DeFi platforms, which ultimately puts more power in the hands of the CFTC.

Prediction markets are regulated by the CFTC, but state gaming regulators believe they should be regulated at the state level. Tribal gaming interests believe prediction markets infringe on their state gambling compacts.

“The bill does nothing to rein in the CFTC,” IGA Chair David Z. Bean noted. “Instead, the CLARITY Act represents the largest expansion of CFTC authority since the 2010 Dodd-Frank bill. This expansion comes at a time when the CFTC is blatantly violating tribal and state laws, its own regulations, and the clear intent of Congress by allowing gaming to occur on platforms such as Kalshi and Polymarket.”