CME Group and Kalshi Executives Clash at CFTC Roundtable Over Regulatory Scrutiny

According to ME News, on August 21 (UTC+8), Terry Duffy, Chairman of CME Group—the world’s largest futures exchange operator—and Luana Lopes Lara, co-founder of the prediction market platform Kalshi, engaged in a verbal dispute during a roundtable meeting held by the U.S. Commodity Futures Trading Commission (CFTC) in Washington. Duffy questioned whether prediction markets face the same regulatory scrutiny as established exchanges and pointed out that some contracts may be susceptible to manipulation. Duffy stated that CME Group is not “a carnival barker,” and mocked Kalshi’s offerings, including 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 subsequently called for an end to attacks on each other’s business models. This dispute occurred amid ongoing controversy between U.S. federal regulators and individual states over regulatory jurisdiction over prediction markets, particularly concerning whether contracts tied to 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 such contracts; two days ago, the CFTC demanded that Kalshi continue trading in response to New York State’s attempt to block its contracts. (Source: ODAILY)