The future of sports prediction markets in the US now lies with federal lawmakers.
Commodity Futures Trading Commission Commissioner nominee Brian Quintenz faces some tough questions in a Senate committee hearing. Lawmakers grilled him on his relationship with Kalshi, where they found he was listed as a board director. The company is the most prominent operator in the industry, creating a potential conflict of interest for the nominee.
Quintenz also faced questions over his relationship with President Trump and his family. Donald Trump Jr. recently became an advisor for Kalshi, leading some Senators to question his ability to stand up to the company if needed.
After the session, Nevada Senator Dina Titus issued a two-page statement requesting lawmakers reject the nomination of Quintenz. She has been the gambling industry’s strongest support in Congress and warned of the devastating consequences that expanding prediction markets could come with.
“The Senate must reject Brian Quintenz’s nomination,” Titus’s statement read. “His testimony illustrates how dangerous his appointment would be, including how he plans to transform this important agency into a rubber stamp for unregulated, illegal sports betting nationwide.”
Quintez served as the CFTC head during President Trump’s first term, remaining in the position from 2017-2021.
Debate Over State Rights Rages On
One of the central topics during the Senate committee hearing was the rights of states. Several have been attempting to ban sports prediction markets, but operators like Kalshi are fighting back. They have asserted that the markets are a form of commodity trading, meaning only the CFTC has the power to regulate the industry.
The legal battle has raised questions about the rights that states have. Several lawmakers have asserted that US law clearly states they can ban these platforms, but the federal government hasn’t supported these claims. Instead, it appears they may be looking for a CFTC Commissioner who is willing to ignore pleas from states to ensure these markets remain legal.
