Rep Questions Quintenz's CFTC Nomination Over Kalshi Ties

Representative Dina Titus has raised significant concerns regarding Brian Quintenz’s nomination as the new chair of the Commodity Futures Trading Commission (CFTC), citing potential conflicts of interest stemming from his involvement with Kalshi, a prediction market platform under CFTC regulation. Titus, in a letter to Acting Chair Caroline Pham, urged an investigation into whether Quintenz may have violated ethical guidelines, internal policies, or federal statutes before his Senate confirmation [1]. She specifically highlighted that Quintenz serves on Kalshi’s board and holds stock options, and a FOIA request revealed he sought information on Kalshi’s competitors and may have participated in CFTC decision-making prior to being officially confirmed [2].

Titus warned that with both Pham and Commissioner Kristin Johnson planning to step down, Quintenz could soon become the sole decision-maker at the agency, raising serious concerns about regulatory bias and conflicts of interest [3]. She also questioned whether Quintenz’s promises to recuse himself from Kalshi-related issues—such as resigning from the board and divesting shares—would be sufficient given the likelihood of regulatory matters involving the platform [4].

The controversy has drawn further attention as the Winklevoss twins, co-founders of crypto exchange Gemini, reportedly reversed their initial endorsement of Quintenz. They expressed dissatisfaction with his June testimony, in which he called for a larger CFTC budget, arguing that he would not sufficiently advance the administration’s crypto agenda [5].

Simultaneously, the CFTC has announced a new initiative to enable the trading of “spot crypto asset contracts” on registered futures exchanges as part of a broader “crypto sprint” to implement 18 recommendations from President Trump’s Working Group on Digital Asset Markets [6]. Acting Chair Pham emphasized the agency’s commitment to accelerating the development of a legal framework for these contracts, which would closely resemble futures-style listed contracts and be traded on designated contract markets (DCMs) [7].

The initiative also involves public consultations on the application of the Commodity Exchange Act and Part 40 of CFTC regulations, with input requested on how securities laws might intersect with such contracts [8]. The CFTC’s aggressive push forward comes amid internal leadership instability, with only two commissioners currently in office and several high-profile departures expected later this year [9].

Sources:

[1] (https://coinpaper.com/10346/brian-quintenz-under-fire-for-kalshi-involvement)