Beset by a wave of departures, the U.S. Commodity Futures Trading Commission will undergo a further transition period in the coming months.
Speaking at an appearance May 16 in Amsterdam, CFTC Acting Chair Caroline Pham announced that she will leave the agency when Brian Quintenz is confirmed by the U.S. Senate. Following Pham’s announcement, Kristin Johnson, a Democratic commissioner, indicated days later that she also plans to leave later this year.
In the sports betting industry, the CFTC has gained attention in recent months due to a high-profile case involving prediction markets on sports. Kalshi, a popular prediction market, has been subject to a wave of litigation on the state level.
Since late March, Kalshi has won two preliminary injunctions that have allowed the company to continue to offer event contracts on sports in New Jersey and Nevada. Separately, the CFTC dropped an appeal against Kalshi in a federal case involving election betting contracts.
The departure of Pham and Johnson will leave only one member on the five-person commission. By month’s end, two other commissioners – Summer Mersinger and Christy Goldsmith Romero – will also leave the CFTC. Bloomberg first reported Johnson’s departure on May 21.
Last month, the CFTC delayed a highly anticipated roundtable on prediction markets without providing an explanation. In February, Pham wrote in a statement that certain anti-innovation policies have restricted the CFTC’s ability to “pivot to common-sense regulation of prediction markets.” Earlier this week, InGame reported that the CFTC will hold a conference call with tribal gaming leaders regarding prediction markets on May 29
Kalshi announced a content deal with Elon Musk’s xAI on May 20, before reneging on the partnership later in the day. Quintenz, a former CFTC commissioner, currently serves as a member of Kalshi’s board of directors. Kalshi has also appointed Donald Trump Jr. to the board.
