CFTC Nominee Says Tribes Can Apply to Run Prediction Markets

Tribal leaders in California have raised red flags over the growing presence of CFTC-registered prediction markets that include betting on sports events. One of those platforms, Kalshi, has been at the center of debate, prompting questions during a recent Senate hearing with CFTC Chair nominee Brian Quintenz.

Good to know

• Tribes can apply for CFTC approval to run their own prediction markets.
• The CFTC may settle its legal fight with Kalshi.
• No decision has been made yet on Brian Quintenz’s confirmation as CFTC Chair.

Several tribal representatives are pushing back against sports betting-style contracts hosted by prediction platforms like Kalshi. These contracts, known as sports event markets, have triggered regulatory questions. Tribes argue these new forms of betting may conflict with tribal gaming agreements or state laws, especially in places like California, where tribal gaming plays a large role in the market.

During a Senate confirmation hearing before the Agriculture Committee, nominee Brian Quintenz addressed the topic. California Senator Adam Schiff brought up the issue of prediction markets, prompting a detailed response from Quintenz.

“I appreciate the concerns that you mentioned. I believe the law is very clear about the purpose of derivative contracts, and about events that have financial or economic consequences qualifying as commodities,” said Quintenz. He continued, “But I would pledge to you, given that this is an area that has more recently found legislative clarity, given the actions of the agency previously, that I would have a very robust all-stakeholder engagement process. I would listen to the concerns of the Tribes that you mentioned.”

Tribes Can Pursue Their Own Markets

Quintenz also noted that nothing prevents Native American Tribes from seeking CFTC approval and launching their own versions of prediction markets, should they choose to do so. That option, while legal, involves a separate regulatory process with federal oversight.

CFTC May Drop Kalshi Case

Meanwhile, Bloomberg has reported that the CFTC is asking for permission to settle its case against Kalshi. The request was filed with the US Court of Appeals for the District of Columbia Circuit, but no further details were provided by the agency.

Confirmation Still Pending

Quintenz, who was nominated to lead the CFTC by former President Donald Trump, has yet to be confirmed. The committee has not held a vote on his appointment as of the latest updates.