The Legal campaign of the Commodity Futures Trading American Commission against prediction market platforms such as Polymarket and Kalshi cannot be just closed, according to Caroline Pham, the president of the acting agency set up by President Donald Trump .
Pham said the agency will bring together experts for a round meeting, probably next month, which can establish a case for the Commission should address the regulations and monitoring of companies that offer betting on event contracts. She noted that in spite of her objections continued in recent years to the application of the law of former President Rostin Behnam against the prediction markets – including bets carried out on sporting events and American political results – The agency moved too far on its way to reverse it easily.
“Unfortunately, the industrial delay and anti-innovation policies in recent years have seriously limited the CFTC capacity to pivot the regulation of common sense prediction,” said Pham. “The current interpretations of the Commission concerning event contracts are a troop of uncertainty legal and an inappropriate constraint on the new administration.”
The implementation of the round table is a “first step necessary to establish a holistic regulatory framework which will promote both flourishing prediction markets and will protect customers from retail against fraud of binary options such as marketing practices and deceptive and abusive sales, “said Pham.
The CFTC lost an initial judicial case against Kalshi when an American federal judge ruled at the end of last year that the agency could not prevent the company from listing the electoral contracts. However, the agency continued an appeal with a superior court, and Kalshi argued in this new legal dispute that only the congress can arrest electoral betting.
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The CFTC had taken a position through rules, orders and application work that these political bets are not authorized by derivative laws and that the agency does not have the capacity to Manipulation of the police in these markets – arguing that this should be a COP elections. With only remaining days in its presidency, the BEHNAM agency was looking for information on Crypto Exchange Coinbase Polymarket customers.
In a language which is a strong contrast of the resistance of Behnam, Pham called the prediction markets “a new important border to exploit the power of the markets to assess the feeling in order to determine the probabilities which can bring the truth to the era information “. She added that the agency must “break with its past hostility”.
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Pham directs the agency in the absence of Trump appointing a permanent candidate to request confirmation from the Senate to take over. So far, the president has only chosen a head for his cousin regulator, the Securities and Exchange Commission. Such confirmations can take months, so that Pham becomes a favorite for permanent employment or not, it will have time to achieve certain political objectives at the CFTC.
