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Fresh start
Ater the Commodity Futures Trading Commission (CFTC)’s latest move, insider opinions that the regulatory body was undergoing a strategic internal reshuffle partly to prediction markets have proved on the money.
a new day”
Stating it was “a new day,” the CFTC bullishly announced a collaboration with the Securities Exchange Commission (SEC) that aims to provide much-needed clarity over prediction markets.
The CFTC took to X to share a joint SEC statement on what the two bodies call ‘Regulatory Harmonization Efforts:’
According to the statement, the collaboration intends to consign any regulatory “no man’s land” caused by inaction by either federal body “to history.”
The Feds’ statement will be music to the ears of state regulators, businesses, stakeholders, and bettors after the CTFC in late April abruptly canceled a prediction roundtable without giving reasons or setting a new date.
New roundtable
The sudden cancelation of the roundtable, coupled with the CFTC’s settling of a lawsuit with Kalshi, led industry insiders to predict the federal body was undergoing an internal rejig to accommodate the impact of prediction markets, or Contracts For Differences (CFDs).
A new roundtable, however, is set to take place on September 29. While only the CFTC and SEC are participating, a joint statement from CFTC Acting Chairman Caroline D. Pham and SEC Chairman Paul S. Atkins underlined their acknowledgment of the need to provide the US with clarity on CFDs.
Pham and Atkins stated that CFDs are “undergoing rapid growth with growing demand from both market operators and the public.”
All change
The bullish statements from the feds on regulatory uncertainty: “That chapter belongs to history” and “it is a new day” underpins an agency in transformation.
Pham, meanwhile, announced she would leave the CFTC chair
In May, the CFTC announced it was taking disciplinary action against some of its workforce: “Pursuant to the President’s executive orders on lawful governance and accountability.” Pham, meanwhile, announced she would leave the CFTC chair later this year.
While President Trump nominated ex-CFTC Commissioner and Kalshi board member Brian Quintenz to take Pham’s place, his nomination hearing has been postponed multiple times. The Senate Committee on Agriculture, Nutrition, and Forestry has “yet to give an official reason” for the delay over Quintenz.
With one Commissioner leaving in February, two in May as well as Pham and another by the year’s end, Quintenz “may be the lone member of the CFTC if he is eventually inducted.”
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