Tribes Urge Senators to Reject Clarity Act Due to Prediction Market Loophole

Tribal gaming leaders in the US are urging senators to reject the Clarity Act (H.R. 3633), which aims to set federal rules for digital assets like Bitcoin and other cryptocurrencies.

The Indian Gaming Association and the California Nations Indian Gaming Association argue that the bill fails to close a major loophole allowing prediction market platforms to operate like state-regulated gambling services, despite being exempt from such regulations.

Tribal leaders are pushing for changes in the bill to bar prediction markets from offering sports betting or casino-style games regulated by states and tribes. They also want clarification that decentralized finance (DeFi) cannot be used to evade gaming laws at the state, tribal, or federal level.