CME CEO clashes with CFTC chair and Kalshi executive over prediction market regulation

According to The Block, at a meeting of the Commodity Futures Trading Commission's (CFTC) Advisory Committee on Innovation, CME CEO Terrence Duffy clashed with CFTC Chairman Michael Selig and Kalshi COO Luana Lopes Lara over prediction market regulation. Duffy noted that some prediction market contracts are vulnerable to manipulation, specifically citing contracts related to Trump's State of the Union address and the removal of Venezuelan President Maduro as potentially subject to manipulation. Selig interrupted, stating these products are not listed in the U.S., calling it "fake news." Duffy fired back, "We can argue about that, I'm happy to." The two also sparred when Kalshi's COO asked whether CME faces market manipulation issues, with Duffy responding, "I have more people in my compliance department than you have in your entire company," to which Lopes Lara replied, "Maybe you should learn efficiency," and Duffy shot back, "Maybe you should learn what a credible market looks like." The clash comes as federal and state regulators vie for oversight of prediction markets, with the CFTC having filed lawsuits against multiple states and proposed a draft regulatory framework.