The Senate Committee on Agriculture, Nutrition, and Forestry has postponed the vote for the Commodity Futures and Trading Commission again. Brian Quintenz, the presidential nominee for CFTC chair, must wait as the committee delayed the vote for the second time this week.
The path to a new chair for the Commodity Futures and Trading Commission faces another delay. The Senate Committee on Agriculture, Nutrition, and Forestry was set to vote on Brian Quintenz’s nomination as chair of the CFTC but announced a late afternoon delay, removing Quintenz from the day’s agenda. This marks the second delay in a week.
**What’s the Hold Up?**
President Donald Trump nominated Quintenz in February. Quintenz, a former CFTC commissioner, is on the board of Kalshi. Lydia Beyoud from Bloomberg noted that despite being Trump’s pick, the committee gave no official reason for postponing the vote, although a spokesperson stated the White House requested the delay.
The gaming industry is closely watching the vote, as the CFTC oversees U.S. prediction markets. Quintenz has indicated he will not prohibit companies like Kalshi or Robinhood from offering sports event contracts unless directed otherwise by Congress or the courts.
Quintenz stated in June that the CFTC will continue permitting brokers to offer sports event contracts unless directed otherwise. He emphasized the Commodities Exchange Act’s clear stance on such contracts, which brokers argue preempts state regulation attempts.
If appointed, Quintenz plans to resign from Kalshi’s board and recuse himself from matters involving Kalshi for one year. The CFTC is currently in flux, with acting Chair Caroline Pham planning to step down, and other commissioners leaving this year.
**Who Regulates Sports Event Contracts?**
Quintenz’s potential role is pivotal for sports event contracts, with many hoping for a stance change. Brokerages claim prediction markets fall under CFTC regulation, not state jurisdiction. Kalshi CEO Tarek Mansour highlighted that their contracts differ from traditional sports betting as they involve trading between users rather than betting against the house. State gaming regulators, however, argue such markets should follow the same regulations, taxes, and fees as other gaming operators.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com