The legal campaign of the United States Future Trade Commission against prediction market platforms, such as Polymarket and Kalshi, cannot be closed, according to Caroline Pham, the president of the interim agency established by President Donald Trump.
Pham said the agency will bring together experts for a round table meeting, probably next month, which can build a case for how the commission must address the regulation and supervision of companies that offer bets on event contracts. He pointed out that despite his continuous objections in recent years to the application position of former President Rostin Behnam against prediction markets, including bets made in sports events and political results of the United States, the agency moved too much in its Way to reverse it easily.
“Unfortunately, undue policies of delay and anti-innovation of recent years have severely restricted the capacity of the CFTC to pivot the regulation of common sense of prediction markets,” Pham said. “The current interpretations of the Commission regarding event contracts are a legal sink uncertainty and an inappropriate restriction in the new administration.”
The round table configuration is a “first necessary step to establish a holistic regulatory framework that will foster the prosperous prediction markets and protect retail customers from the fraud of binary options, such as marketing and deceptive sales practices Pham.
The CFTC lost an initial judicial case against Kalshi when a federal judge from the United States ruled at the end of last year that the agency could not prevent the company from lifting electoral contracts. However, the agency followed an appeal with a superior court, and Kalshi argued in that new legal dispute that only Congress can stop electoral bets.
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The CFTC had taken a position through rules, orders and application work that such political bets are not allowed under the laws of derivatives and that the agency does not have the ability to monitor the manipulation of these markets, basically arguing that it would have to be a COP elections. With only remaining days in its presidency, Behnam’s agency was looking for information about Polymket clients at Crypto Exchange Coinbase.
In language, that is a strong contrast of Behnam’s resistance, Pham called prediction markets “an important new border to take advantage of the power of markets to evaluate the feeling to determine the probabilities that the truth can lead to age of information “. He added that the agency needs to “break with its past hostility.”
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Pham directs the agency in the absence that Trump names a permanent candidate to seek confirmation of the Senate to take charge. Until now, the president has only chosen his cousin regulator, the Bag and Securities Commission. Such confirmations can take months, so whether Pham becomes a favorite for permanent work, he will have time to achieve some policy objectives in the CFTC.
