Senators press Trump’s CFTC nominee Quintenz over sports contracts

Brian Quintenz, nominated by U.S. President Donald Trump to head the Commodity Futures Trading Commission (CFTC), faced questions in the Senate on Tuesday over the growing use of event-linked derivatives that resemble sports betting, as tribal leaders and lawmakers raised concerns about regulatory gaps and jurisdictional overreach.

Appearing before the Senate Committee on Agriculture, Nutrition, and Forestry on Tuesday as part of his confirmation process, Quintenz addressed the contentious issue of whether federally regulated prediction markets, such as Kalshi, are effectively offering sports wagers without acquiring state gaming licenses or complying with tribal gaming agreements.

California Senator Adam Schiff directly questioned Quintenz on the legality of CFTC-regulated platforms allowing bets on sporting outcomes, noting the implications for tribal sovereignty and the Indian Gaming Regulatory Act (IGRA). 

“I’m very concerned that these event contracts, which seem pretty indistinguishable, at least from the consumer point of view, from gaming, violate tribal sovereignty and undermine state and tribal gaming compacts,” Schiff said.

In response, Quintenz maintained that the Commodity Exchange Act (CEA) provides sufficient legal guidance. “I believe the law is very clear about the purpose of derivative contracts, and about events that have financial or economic consequences qualifying as commodities,” he said, avoiding a direct reference to sports betting despite Schiff’s pointed line of questioning.

The issue has taken on heightened urgency following reports that Native American tribes fear the rise of federally approved prediction markets could encroach on their exclusive rights to operate gambling in states like California. 

Kalshi and similar operators claim that their platforms, which let users bet on yes/no outcomes of events, are legal under CFTC oversight. But some lawmakers argue the offerings resemble traditional sports wagers.

Pressed further, Quintenz said tribes themselves could seek regulatory approval from the CFTC to offer such contracts. “Nothing in the CEA, that I’m aware of, prohibits, or affects, the opportunity of tribes to offer those products and those markets and those services,” he stated. However, that suggestion did not address concerns about whether allowing such platforms to operate undermines the exclusivity guaranteed in state-tribal compacts.

While no vote was taken during the hearing, the committee is expected to decide on Quintenz’s nomination in the coming weeks. If approved, it would then go before the full Senate.

Senator Cory Booker also raised questions about Quintenz’s prior role on Kalshi’s board and his financial stake in the company. Quintenz said he would divest and recuse himself for one year on any Kalshi-related matters. However, Booker noted that Kalshi recently hired Donald Trump Jr. as a special advisor, questioning whether the nominee could remain impartial. 

“I’m worried you’re going to be in a position where — as chairman — are you going to feel empowered to push back on a company that is being advised by the president’s son?” Booker asked.

The issue of prediction markets resembling sports betting has prompted at least three legal challenges from states, including Nevada, New Jersey, and Maryland, against Kalshi, arguing that sports event contracts fall under state-level gambling laws rather than federal commodities regulation. Kalshi has secured court injunctions in two of those cases so far.

During the hearing, Quintenz was noncommittal when asked whether the CFTC would appeal unfavorable rulings in such cases. “The agency would want to ensure that it’s defending the Commodity Exchange Act and the remit the agency has around futures and event contracts,” he said.