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The CFTC’s move also comes as other US regulators continue to craft their own crypto policies. The agency and the Securities and Exchange Commission (SEC) jointly issued an interpretation in March on how certain crypto assets would be treated under federal securities laws. 

A lot of bigger questions remain without the CLARITY Act. The bill aimed to establish a federal framework for digital commodities and delineate the roles of the SEC and the CFTC. 

Its failure also leaves unresolved disputes over prediction markets and state and tribal gaming authorities, outside a comprehensive congressional framework. Those issues took on new significance during Senate floor debate over the bill, as concerns about federal commodities oversight extended to markets typically regulated at the state or tribal level. 

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However, McFadden’s ruling left the door open for Interior to formally reconsider the underlying gaming eligibility question.

Scotts Valley has maintained that federal officials reversed course under intense political pressure from the Yocha Dehe Wintun Nation, a neighboring tribe that opposes the Vallejo casino development.

During Friday’s hearing, McFadden appeared skeptical that Scotts Valley had met the rigorous legal standard required to demonstrate irreparable harm. He has not yet issued a ruling on the preliminary injunction request.