A public dispute broke out at a Commodity Futures Trading Commission roundtable in Washington as CME Group Chairman Terry Duffy challenged the regulatory footing of prediction markets and Kalshi co-founder Luana Lopes Lara pushed back. Duffy questioned whether prediction market platforms face the same scrutiny as established exchanges and said some contracts could be subject to manipulation. He also mocked several Kalshi offerings, including a contract tied to Nathan's hot dog eating contest, saying CME Group was not a "carnival barker." Lara replied that traditional markets and exchanges also carry risks and said regulators should be responsible for identifying and addressing them. DraftKings CEO Jason Robins later urged participants to stop attacking one another's business models. The exchange came as U.S. federal regulators and state authorities remain in conflict over who has jurisdiction over prediction markets, including whether contracts tied to sports, elections and other real-world events should be treated as federally regulated derivatives or gambling products governed by state law.
CME Group Chairman Terry Duffy and Kalshi co-founder Luana Lopes Lara traded barbs at a Commodity Futures Trading Commission roundtable in Washington, exposing the widening fight over how prediction markets should be regulated in the U.S.
Dispute breaks out at CFTC meeting
Duffy questioned whether prediction markets are subject to the same regulatory scrutiny as established exchanges and said some of the contracts could be vulnerable to manipulation. He said CME Group was not a "carnival barker" and took aim at several contracts listed by Kalshi, including one tied to Nathan's hot dog eating contest.
Lara answered that traditional markets and exchanges also carry risks, adding that regulators should be responsible for finding and addressing those problems. DraftKings CEO Jason Robins later called on participants to stop attacking each other's business models.
Jurisdiction fight remains unresolved
The argument came as federal regulators and U.S. states continue to dispute who has authority over prediction markets. At the center of that fight is whether contracts tied to sports, elections and other real-world events should be classified as federally regulated derivatives or as gambling products governed by state law.
Last week, a Washington state judge ordered Kalshi to stop offering the contracts. Two days ago, the CFTC told Kalshi to continue trading as it responded to an effort by New York state to block the contracts.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
