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Summary:
- President Trump’s nominee to chair the CFTC, Brian Quintenz, says tribes can seek the commission’s approval to offer their own event markets.
- He declined to take a clear stance on appealing court rulings against such contracts.
- Quintenz pledged to divest from prediction market Kalshi and recuse himself for one year if confirmed.
Brian Quintenz, former commissioner and President Trump’s nominee to chair the Commodity Futures Trading Commission (CFTC), faced a wide range of questions during his Senate confirmation hearing Tuesday.
Among the more pointed topics were the legality of sports event contracts, tribal sovereignty concerns, and his personal ties to prediction market platform Kalshi.
Legal Ambiguity on Sports Betting Markets, Unaddressed
While the hearing touched on farming and cryptocurrency, a notable exchange came when Sen. Adam Schiff (D-Calif.) pressed Quintenz on the CFTC’s handling of prediction markets that allow bets on sports outcomes.
California tribes have expressed concerns that such markets violate their exclusivity agreements with states.
Quintenz responded by emphasizing that the current law outlines which event contracts are permissible.
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
However, he did not directly address the legal ambiguity around sports betting markets specifically.
I would pledge to you… that I would have a very robust all-stakeholder engagement process. I would listen to the concerns of the tribes that you mentioned
Still, what that process would look like, or whether it would result in action, remains unclear.
Many tribal representatives left a recent meeting with Acting Chair Caroline Pham feeling that the agency was unlikely to intervene.
One attendee recalled,
She basically said at the outset, ‘I’m happy to talk to you, but I am out the door and I have no idea what the new director might do with this issue
Tribes Could Offer Their Own Event Markets
Quintenz also floated the idea that tribes could simply offer their own event markets.
Nothing in the CEA, that I’m aware of, prohibits… tribes to offer those products
But critics argue this sidesteps the core issue, as tribal gaming compacts often grant exclusivity, not competition.
Pressed on whether he would appeal a court decision that ruled against sports betting contracts, Quintenz declined to commit.
The agency would want to ensure that it’s defending the Commodity Exchange Act
Senators also questioned his ties to Kalshi. Quintenz confirmed he would resign from its board and divest his shares if confirmed.
“I will abide by all applicable ethics statutes and regulations”, he said. Still, Senator Cory Booker voiced concern over whether Quintenz could remain impartial, given Kalshi’s hiring of Donald Trump Jr. as an advisor.
I hope you can appreciate that there will be some real questions about your role
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