Can the fox be trusted to protect the hen home? In response to former Kalshi board member and present Commodity Futures Buying and selling Fee (CFTC) nominee Brian Quintenz, the reply to that query is a convincing “sure”.
Quintenz, who lately testified earlier than the U.S. Senate Committee on Agriculture, Diet, and Forestry about the way forward for prediction buying and selling markets, and potential conflicts of curiosity regarding his work in that very business, will not be anxious about this stuff in any respect.
When requested whether or not or not he would problem current court docket actions towards his former business, the CFTC nominee answered, “The company would need to be certain that it’s appropriately defending the Commodity Change Act and the remit that the company has to manage and preempt legal guidelines, state legal guidelines round futures and derivatives markets.” That sort of obscure reply is probably going very regarding to anybody working a licensed sportsbook that has to compete with unlicensed predictions markets, however that’s the world we’re residing in.
California Senantor Adam Schiff (D) challenged Quintenz in regards to the similarities between a licensed sports activities betting operator and a prediction market saying, “If betting on the result of a sporting occasion appears to be like like sports activities betting, appears to be like like gaming, smells like gaming, feels like gaming, there are winners and losers like gaming, it’s most likely gaming.”
When requested how predictions markets would influence licensed Indian tribes, Quintenz replied with a veiled gross sales pitch saying, “Nothing within the CEA that I’m conscious of prohibits or impacts the chance of tribes to supply these merchandise and people markets and people providers.”
Quintenz’s potential nomination, and his unwillingness to budge on the problem of predictions markets, signifies that regulated sportsbooks might be dealing with some main competitors from unlicensed predictions markets…who’ve a robust good friend in the one company that may regulated them.
