President Trump nominates Kalshi board member as new CFTC chair
In what could be a huge boost for firms looking to offer sports event contracts, ex-Crypto.com council member Brian Quintenz has been named as chair of the derivatives regulator
Brian Quintenz has been nominated by President Donald Trump to be chair of the Commodity Futures Trading Commission (CFTC).
The decision to select Quintenz, who served as commissioner for the derivatives regulator between August 2017 September 2021, could prove a pivotal one for the progression of event contracts, given he is on the board art predictions market New York-based Kalshi.
News Kalshi’s sports event contracts was first released in January but, on February 7, the firm notified the CFTC of its plans to self-certify single-match outcomes, in what would be a step closer to what some have argued is effectively sports betting, a source of controversy within the regulated US market.
Crypto.com was the first to roll out sports event contracts, just before Christmas, but was soon asked to halt its offering by the CFTC, as was Kalshi, but both requests have been ignored so far.
In the case of both Crypto.com and Kalshi, sports event contracts are accessible to anyone over the age of 18 in all 50 US states.
Quintenz also has experience working for Crypto.com, serving as an advisory council member for the Singapore-based exchange for 12 months between November 2021 and 2022.
In his most recent role, Quintenz was as head of crypto policy for venture capital firm Andreessen Horowitz, having initially joined as an advisory partner in September 2021.
Under his leadership at the CFTC, it is widely expected that the regulator will take a more favorable approach to sporting and political event contracts than the previous administration, which previously engaged in a legal battle with Kalshi over whether the exchange should be permitted to offer markets on the outcome of political elections.
In that instance, Kalshi prevailed at district court level, but the result of the CFTC’s counter-appeal is yet to be announced. In the meantime, the firm continued to offer election event contracts in the run up to last November’s presidential election and this month’s Super Bowl.
While the CFTC nor the Trump administration has yet confirmed Quintenz’ appointment, the incoming chair issued a statement on LinkedIn.
It reads: “It is my great honor to be nominated by President Trump as the next chairman of the Commodity Futures Trading Commission, where I had served as a commissioner in his last administration.
“The CFTC plays a critical role in maintaining robust hedging and price discovery markets that are the envy of the globe. The agency is also well poised to ensure the USA leads the world in blockchain technology and innovation. I look forward to working with President Trump’s incredible financial regulatory team.”
Soon after Trump won the race for the White House, his eldest son Don Jr was named as a strategic advisor for Kalshi, working alongside Quintenz on the board.
Trump’s victory also meant the majority control within the CFTC has shifted from Democrat to Republican, while Quintenz replaces acting chair Caroline Pham, who recently heralded prediction markets as an “important new frontier” ahead of a public roundtable on the topic.
Pham had previously openly dissented against the CFTC’s stance on event contracts, describing it as an “inappropriate constraint” and abstained from the vote regarding the fate of Kalshi’s election event contracts in 2023.
In November 2022, after a CFTC review into Kalshi’s prediction markets on the congressional elections, Quintenz publicly praised Pham’s decision to abstain from the vote.
He wrote on X: “Thank you @CarolineDPham for sticking up for the rule of law! Kalshi, the hundreds of public commenters, and the markets as a whole, deserve a full and transparent view into this important decision.”
After a brief tenure as acting chair, Pham has welcomed the appointment of her successor, stating: “I congratulate my friend Brian Quintenz on his selection for CFTC chairman.
“I worked with Brian on important initiatives that he led to success when he was a CFTC commissioner. He will do the same for crypto and innovation. I look forward to supporting Brian and his leadership at the CFTC.”
At the time of writing, both Kalshi and Crypto.com’s sports event contracts remain under review by the now Quintenz-led CFTC.