Tribal Gaming Group Opposes Crypto Bill Over Prediction Market Concerns

The Indian Gaming Association (IGA) announced it opposed a federal bill to regulate the cryptocurrency industry. The Digital Asset Market Clarity Act would allow the Commodity Futures Trading Commission (CFTC) to regulate certain crypto transactions.

The bill, sponsored by Sen. Cynthia Lummis (R-WY), aims to create a clear rulebook for cryptocurrencies and digital assets, including rules for decentralized finance (DeFi) applications. However, the IGA opposes a carve-out in legislation aimed at DeFi platforms, which ultimately puts more power in the hands of the CFTC.

Tribal gaming interests believe prediction markets infringe on their state gambling compacts. The Mohegan Tribe, owner and operator of one of the state’s largest casinos, supports the state’s crackdown on prediction markets. The IGA views the expanding scope of the CFTC as a threat to sovereignty and tribal gaming operations.