Acting Commodity Futures Trading Commission (CFTC) Chair Caroline Pham plans to continue discussing the regulation of political event contracts.
Pham has announced plans to launch a series of roundtables to discuss trends and innovation in market structure, including prediction markets like Kalshi. The prediction markets have emerged as a hot topic of discussion for their political event contracts, which have exploded in popularity due to political wagering being prohibited by state laws.
“The CFTC must take a forward-looking approach to shifts in market structure to ensure our markets remain vibrant and resilient while protecting all participants,” said Pham in a press release. “Innovation and new technology has created a renaissance in markets that presents new opportunities that are accessible to more people, as well as risks.”
The roundtables, taking place over the next several months, will leverage studies, data, public input and expert reports to also discuss digital assets and affiliated entities.
The CFTC plans to work with market experts, public interest groups and industry leaders to spark comprehensive discussions about ways to establish concise rules and standards.
Pham is expanding the conversation on event contracts after voicing her desire in 2024 for the CFTC to create a regulatory framework for prediction markets. Pham believes the CFTC has the authority to establish a framework as contracts are not considered gaming. If the contracts were gaming, their regulatory framework would be up to the states.
Leadership change for the CFTC
Last week, President Donald Trump appointed Pham as acting chair of the CFTC after she was confirmed by the commission’s five-member team. Pham was named acting chair following the resignation of Rostin Behnam with the Senate set to name a permanent chair. Pham was promoted to acting chair after serving as a CFTC commissioner for two years. Before joining the CFTC, Pham served as a Managing Director at Citigroup.
