Brian Quintenz has been tapped to be the new boss of the US Commodity Futures Trading Commission. A crypto lobbyist, Quintenz is also on the board of directors of Kalshi Inc., one of the companies he will have to regulate should he be cleared for the job at the CFTC.
Trump Nominates Crypto Lobbyist for CFTC Top Job
Quintenz, however, is not a chance or inexperienced pick either. Although he may be more inclined to show leniency to prediction market platforms and has aligned himself with President Trump’s view of the economy, which includes cryptocurrencies, Quintenz is, in fact, a veteran regulator.
He served as CFTC commissioner between 2017 and 2021, meaning that he is hardly new on the job, and that he has cut his teeth working at one of the most demanding government agencies in the country. With his new nomination, he will have a chance to further advance regulatory rules in critical areas for the current administration, including prediction markets and cryptocurrencies.
Quintenz has acknowledged his connection to at least some of the companies he would be supposed to regulate and confirmed that, should he be appointed as the new CFTC chair, he would step down from any jobs that may constitute a conflict of interest.
This includes his position on the board of directors at Kalshi. Kalshi is particularly set to benefit from an insider assuming the top job, as the company has been fighting multiple challenges from state gambling regulators.
Kalshi Fighting Off Gambling Regulators as It Maintains Its Position
Kalshi has repeatedly stated that its operations are not subject to state regulation, and least of all – gambling watchdogs – but this argument has been challenged by those same authorities
The company has already fought off several injunctions and has been allowed to continue operating sports products, which could constitute a higher share of its revenue than the same segment does for established companies such as FanDuel and DraftKings.
In the meantime, the current administration is indeed cozying up to the cryptocurrency and prediction market sector. Donald Trump Jr., the President’s son, is also part of the board of directors at Kalshi, which clearly signals interest on behalf of the Trump family in the sector.
Kalshi is not winding down its operations, waiting for regulatory outcomes, as the platform is expanding aggressively into more contracts it can offer.