Senate Presses Nominee for CFTC Head On Prediction Markets

The US Senate has taken a keen interest in sports prediction markets.

The Agriculture Committee held a hearing to question Brian Quintez, who has been nominated to take over the Commodity Futures Trading Commission. Several Senators pressed the nominee on his stance on sports prediction markets and the role of states in the industry. They also questioned his ties to the industry and how it could affect his leadership.

Quintez served as the head of the CFTC during President Trump’s first term, holding the position from 2017 to 2021.

Quintez Questioned Over Kalshi Ties

One of the biggest points Senators grilled nominee Brian Quintez over was his financial disclosures. They revealed that he was a board director for KalshiEx, the premier prediction market operator in the country. The company is currently fighting several states in federal court as it attempts to ignore the orders to exit.

Several committee members pointed to this relationship and asked Quintez how he could be impartial given the federal regulators' role in the legal fight. They also questioned his relationship with the President’s son, Donald Trump Jr, who recently accepted an advisory position with Kalshi. 

The Democrats voiced these concerns on the committee, but didn’t garner much support from Republican members.

Sports Betting Industry Opposes Nomination

Quintez’s ties to Kalshi and his previous stint as CFTC Commissioner have led to tribes, state lawmakers, and sportsbooks speaking out against his nomination. They have been critical of the relationship the President has with Kalshi and crypto trading markets, and believe the nominee would prioritize protecting sports prediction markets at all costs.

While some sportsbooks have already taken steps towards launching their prediction platforms, states and tribes could face massive losses if the new industry is expanded. It will reduce revenue while also leading to an even greater increase in problem gambling. 

Quintez refused to acknowledge the complaints from tribes, pointing out that they have the right to offer their prediction markets.

Testimony Leads to Statement from Key Senator

Throughout the committee’s hearing with Quintez, it was made clear that he is in favor of sports prediction markets. He never faltered from this stance, leaving little question of what his second term as Commissioner would entail.

After the hearing, Nevada Senator Dina Titus released a statement urging lawmakers to reject the nominee. She is the most prominent proponent of legal gambling in the US Senate, often rushing to the industry’s aid.

“The Senate must reject Brian Quintenz’s nomination,” Titus said. “His testimony illustrates how dangerous his appointment would be, including how he plans to transform this important agency into a rubber stamp for unregulated, illegal sports betting nationwide.”