Odaily Planet Daily report: At a roundtable hosted by the U.S. Commodity Futures Trading Commission (CFTC) in Washington, Terry Duffy, Chairman of CME Group—the world’s largest futures exchange operator—clashed verbally with Luana Lopes Lara, co-founder of the prediction market platform Kalshi. Duffy questioned whether prediction markets are subject to the same regulatory scrutiny as established exchanges and raised concerns that certain contracts may be susceptible to manipulation.
Terry Duffy stated that CME Group is not a "carnival barker," mocking Kalshi's offerings such as contracts on the Nathan's Hot Dog Eating Contest. Luana Lopes Lara responded that traditional markets and exchanges also carry risks, and regulators should be responsible for identifying and addressing such issues. DraftKings CEO Jason Robins then called for an end to attacks on each other’s business models.
This dispute occurs amid ongoing contention between U.S. federal regulators and individual states over regulatory jurisdiction over prediction markets, with key questions centering on whether contracts based on sports, elections, and other real-world events constitute federally regulated derivatives or state-governed gambling products. Last week, a judge in Washington State ordered Kalshi to halt the offering of such contracts; two days ago, the CFTC demanded that Kalshi continue trading in response to efforts by New York State to block its contracts. (Decrypt)