Better Times for Political Betting May Be on the Horizon as CFTC Chair Resigns

The US Commodity Futures Trading Commission (CFTC) chairman is set to step down, potentially heralding a favorable era for political betting. Rostin Behnam, who chaired the commission during Biden’s presidency, was among the chief opponents of the growing vertical.

Behnam Says He Did His Job to the Best of His Abilities

Behnam announced his exit yesterday, confirming that he will exit his job as chair on January 20 – the day of Donald Trump’s inauguration as president.

The outgoing chair commented on his departure on X, saying that it would mark the end of seven years at the helm of the CFTC. While he will be leaving his job as chair on January 20, he will remain at the commission until February 7.

In a statement, Behnam said that his time as chair saw him work hard on dealing with risks within America’s regulated markets. He was committed to preventing disruptions and fulfilling the agency’s purpose.

Behnam Opposed Markets That Undermine Elections’ Integrity

Political betting has been steadily gaining traction in America and beyond. While wagering on political events and political exchange markets, in the traditional sense of the word, are prohibited, some firms have found workarounds by adopting a different model.

Still, the measure which prohibited contracts involving political events was passed by Behnam, preventing many platforms from accessing the US market. His amendment to ban event contracts connected to elections and sporting events was opposed by two of his colleagues but was nevertheless passed in the summer of 2024.

Behnam argued that such products “commoditize and degrade the integrity of the uniquely American experience of participating in the democratic electoral process.” In an earlier statement, he also pointed out that the CTFC, which is responsible for regulating financial markets, is not equipped to serve the role of an “election cop.”

He also spearheaded the regulatory action against Kalshi’s products, although the platform ultimately won in court and launched election-related products for the recent election.

Favorable Era for Political Betting to Come

In an interview with The Financial Times, Behnam admitted that he is strongly concerned about the future of trading markets and expressed wariness of contracts related to gaming, elections, assassinations and terrorism.

Behnam hopes that his successor will remain vigilant and will address potential issues that blur the line between what is legal and what is not.

While Behnam’s successor has not yet been announced, the Trump administration’s seemingly favorable stance on gambling businesses may mean that better days for political betting are on the horizon.

Elon Musk, who has remained a staunch supporter of Trump, has previously praised political markets for their accuracy, emphasizing their track record of being more accurate than polls.

In the meantime, prediction platforms such as Crypto.com continue to grow and could potentially soar if a pro-gambling successor takes up Behnam’s mantle.