Titus Challenges Quintenz's Kalshi Ties Amid CFTC Leadership Vacancy

Democratic Representative Dina Titus has raised significant concerns regarding Brian Quintenz’s nomination to lead the Commodity Futures Trading Commission (CFTC), citing potential conflicts of interest due to his involvement with Kalshi, a prediction market platform regulated by the agency. In a letter addressed to Acting Chair Caroline Pham, Titus urged the CFTC to investigate whether Quintenz may have violated internal policies or ethical commitments prior to his Senate confirmation [1]. She specifically highlighted his current position on Kalshi’s board and his ownership of stock options in the company, raising questions about whether he improperly accessed competitive intelligence or influenced regulatory decisions before being officially confirmed [2].

A recent FOIA request revealed that Quintenz had inquired about Kalshi’s competitors and potentially participated in CFTC decision-making prior to confirmation. These revelations emerged following repeated postponements of his Senate Agriculture Committee hearing, which were orchestrated by the White House. Titus warned that Quintenz’s regulatory choices could undermine state authority over gambling and consumer protections, particularly concerning event contracts tied to sports events. She criticized such contracts for circumventing state-level oversight and argued that they operate in a regulatory gray area [3].

Despite Quintenz’s pledge to resign from Kalshi, divest his shares, and avoid any involvement with the firm for a year if confirmed, Titus questioned the feasibility of such a commitment. With both Pham and Commissioner Kristin Johnson planning to step down soon, she warned that Quintenz could soon become the sole decision-maker at the CFTC, making it nearly impossible to avoid Kalshi-related regulatory issues. She argued that any regulatory inaction would directly benefit the firm [4].

Adding to the controversy, the Winklevoss brothers—co-founders of crypto exchange Gemini—reversed their initial endorsement of Quintenz. They reportedly informed President Donald Trump that Quintenz would not sufficiently advance the administration’s crypto agenda. The Winklevosses specifically criticized Quintenz’s June testimony in which he suggested the CFTC needs a larger budget to address its growing responsibilities in the digital asset sector [5].

Meanwhile, the CFTC has launched a new initiative aimed at enabling the trading of “spot crypto asset contracts” on CFTC-registered futures exchanges. This move is part of the agency’s broader “crypto sprint” to implement 18 recommendations from President Trump’s Working Group on Digital Asset Markets [6]. The effort includes proposals to clarify how cryptocurrencies can be treated as commodities, how decentralized finance (DeFi) participants can comply with CFTC rules, and how blockchain-based derivatives might fit within current regulatory frameworks.

Acting Chair Pham confirmed the initiative, stating the CFTC is moving “full speed ahead” in collaboration with the SEC’s Project Crypto. The agency is seeking public input on the legal and regulatory application of Section 2(c)(2)(D) of the Commodity Exchange Act and Part 40 of its own regulations. These sections set the framework for retail commodity transactions involving leverage or margin trading and outline the operational obligations of designated contract markets. The CFTC is also inviting feedback on how securities laws might interact with such contracts, particularly when non-security crypto assets still fall under the SEC’s investment contract framework [7].

Despite these efforts, the CFTC faces internal instability, with only two commissioners currently in office. Johnson is expected to leave later this year, and several others, including former Chair Rostin Behnam, have already stepped down in 2025. Nevertheless, the agency remains committed to advancing its digital asset agenda amid leadership turnover and regulatory uncertainty [8].

Source: [1] Brian Quintenz Under Fire for Kalshi Involvement (https://coinpaper.com/10346/brian-quintenz-under-fire-for-kalshi-involvement)