The U.S. Commodity Futures Trading Commission is taking a new approach in its legal battle against prediction market platforms like Polymarket and Kalshi. Acting chairman Caroline Pham, appointed by President Donald Trump, has stated that the agency cannot simply shut down these platforms and will instead gather experts for a roundtable meeting to discuss regulation and oversight.
Pham expressed concerns about the agency’s past enforcement stance and the legal uncertainty surrounding event contracts. She believes that a holistic regulatory framework is necessary to foster thriving prediction markets while protecting retail customers from fraud and abusive practices.
While the CFTC initially lost a court case against Kalshi, the agency is appealing the decision and arguing that only Congress has the authority to regulate election betting. Pham emphasized the importance of embracing prediction markets as a tool for assessing sentiment and determining probabilities in the Information Age.
As the acting chairman, Pham is leading the agency until a permanent nominee is named by Trump. Despite the lack of a permanent appointment, Pham is committed to achieving policy goals at the CFTC and promoting a more open approach to regulating prediction markets.