Share 
State of Play’s TL;DR
- The Clarity Act failed a key Senate vote, dealing a blow to crypto and prediction market operators.
- The failed vote, however, was welcomed by gaming groups that oppose sports and casino contracts.
The Digital Asset Market Clarity Act failed a key US Senate vote on Sept. 17, a result that could slow momentum for crypto-linked prediction market operators while giving some gaming industry groups a near-term win.
The bill fell short at 49-50, well below the 60 votes needed to advance. It now appears unlikely to move forward in 2026.
For gambling stakeholders, the outcome cuts two ways: it is a setback for crypto businesses and prediction operators tied to broader federal market-structure reform, but it also removes one possible path for sports- and casino-related event contracts to gain clearer footing.
Senate vote stalls broader crypto framework
Four Republican lawmakers broke ranks to oppose the bill. Ethics concerns were cited as a possible reason the legislation failed.
The defeat was a blow to crypto-connected prediction operators and to the Commodity Futures Trading Commission under Chairman Michael Selig. It also leaves unresolved the wider question of how federal regulators would oversee digital-asset activity tied to event contracts and related products.
Lawmakers quickly split on the result. Sen. Ruben Gallego said the legislation failed because Republicans “refuse to say no to the president,” while Sen. Cynthia Lummis accused Democrats of having “played games.”
Gaming groups had pushed for limits on sports and casino contracts
The bill’s defeat may be better news for traditional gaming interests that had urged Congress to draw a harder line around prediction markets touching gambling-like subjects.
A coalition – which included the American Gaming Association, the Indian Gaming Association (IGA), the Association of Gaming Equipment Manufacturers, and UNITE HERE – sent a letter on 16 June asking lawmakers to include language banning sports- and casino-related contracts.
IGA Chairman David Bean said the Senate “did the right thing” by blocking the measure, though he also warned that “it is not the end of this fight.”
What it could mean for players
The absence of a federal crypto framework could push some bettors toward offshore or unlicensed platforms that accept crypto. That matters because crypto already has meaningful overlap with sports betting behavior: Paysafe reported that 64% of online sports bettors dabble in crypto, compared with 30% of the broader US population.
Paysafe also said crypto deposits are currently legal only in Wyoming and Colorado, while crypto withdrawals are not legal anywhere. For players, the immediate takeaway is less clarity, not more. The Clarity Act’s defeat does not create new legal payment options, and it leaves open questions about whether any replacement federal legislation will emerge later in the session.
Based on reporting by Jess Marquez for IGM.
