CME Group Chairman Terry Duffy and Kalshi Co-Founder Luana Lopes Lara Clash Verbally at CFTC Roundtable

Odaily News - Terry Duffy, Chairman of CME Group, the world's largest futures exchange operator, and Luana Lopes Lara, Co-Founder of prediction market platform Kalshi, clashed verbally at a roundtable hosted by the U.S. Commodity Futures Trading Commission (CFTC) in Washington. Duffy questioned whether prediction markets are subject to the same regulatory scrutiny as established exchanges, noting that certain contracts could be subject to manipulation.

Terry Duffy stated that CME Group is not a "barker in a circus," and mocked some of the contracts offered by Kalshi, including the Nathan's Hot Dog Eating Contest contract. Luana Lopes Lara responded that traditional markets and exchanges carry risks as well, and that regulators should be responsible for identifying and addressing such issues; DraftKings CEO Jason Robins subsequently called for an end to attacks on one another's business models.

The dispute comes amid ongoing disagreements between federal regulators and states over regulatory authority for prediction markets, with the central question being whether contracts covering sports, elections, and other real-world events are federally regulated derivatives or gambling products subject to state law. Last week, a Washington state judge ordered Kalshi to stop offering related contracts; two days later, the CFTC asked Kalshi to continue trading, in response to New York state's attempts to block its contracts. (Decrypt)