Quintenz Submits Ethics Statement Regarding Kalshi Amid Pending CFTC Appointment Until just recently, the Commodity Futures Trading Commission (CFTC) had little to do with sports betting. But that might significantly alter if the U.S. Senate validates Brian Quintenz as CFTC Chairman. In preparing for his verification hearing, Brian Quintenz sent a financial disclosure and an ethics statement, describing how he 'd manage prospective conflicts of interest. As CFTC Chairman, Quintenz would manage forecast market service providers, including Kalshi, where he functions as a board member. - As CFTC Chairman, Brian Quintenz would manage forecast market operators, including Kalshi. - The CFTC is presently evaluating the function of prediction market operators in sports betting. - States and traditional sports betting business stand to lose millions must the CFTC decide forecast market operators can run as de facto sportsbooks. Background States rushed to legalize sports wagering after the U.S. Supreme Court lifted the restriction in 2018. Sports wagering business like DraftKings and FanDuel spent relative fortunes to protect licenses, state by state. And states hung around and money, developing regulatory companies to supervise the new betting sector and collect their most recent earnings source. Prediction market operators like Kalshi are challenging sports betting's state regulatory framework. The CFTC federally manages prediction markets that provide futures agreements. Traditionally, the contracts focused on financial outcomes, like the price of oil or Bitcoin. Now, however, forecast markets use agreements based on sporting occasion results. In January, Kalshi informed the CFTC of its intent to use sporting occasion contracts, in the nick of time for the Super Bowl. The move came right after Rostin Benham resigned as CFTC Chairman. Benham protested forecast markets offering contracts on elections and sporting events.