Former Commodity Futures Trading Commission Chair Rostin Behnam said U.S. lawmakers need to draw a clearer line between risk management and gambling as prediction markets expand rapidly. Speaking in an interview with Crypto In America on Sept. 29, Behnam said litigation over that boundary could eventually reach the U.S. Supreme Court.
He also argued that the regulatory framework for crypto remains inadequate after the Clarity Act failed to advance in the Senate. In his description, the CFTC is trying to oversee the spot market with its existing authority in a way that resembles fixing something with "duct tape and paper clips." Behnam said regulators need rules with more staying power rather than relying on limited powers that were not designed to fully cover the market.
His remarks tied two issues together: the legal status of fast-growing prediction markets and the broader question of how U.S. agencies should supervise crypto spot trading when Congress has not delivered a more permanent structure.
Former Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam said Congress needs to clarify the line between risk management and gambling as prediction markets grow at an explosive pace, adding that related litigation could ultimately reach the U.S. Supreme Court.
Prediction market disputes could end up before the Supreme Court
In an interview with Crypto In America on Sept. 29, Behnam said lawmakers need to define more clearly whether prediction markets should be treated as risk-management tools or as gambling activity. He said lawsuits tied to that question may eventually be submitted to the Supreme Court.
Behnam says current spot-market oversight is not enough
Behnam also said that after the Clarity Act failed to move forward in the Senate, the CFTC has been left regulating the spot market with its existing authority in a way that is like using "duct tape and paper clips." He said regulators need more durable rules.
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