Video | CME, CFTC, and Kalshi Clash Heatedly Over Prediction Market Regulation

CME CEO Terry Duffy engaged in a heated exchange with the CFTC and Kalshi over prediction market regulation at the CFTC Innovation Advisory Committee meeting. He stated bluntly that he is "very concerned" about prediction markets, arguing that a large number of self-certified products carry manipulation risks, and specifically called out the Maduro contract, the presidential teleprompter contract, and certain sports event contracts. CFTC Chairman Michael S. Selig pushed back on the spot, noting that the Maduro and teleprompter-related contracts originated from Polymarket's offshore market and were not listed in the U.S.

The dispute then extended to Kalshi. Duffy also called out the Nathan's Hot Dog Eating Contest and hashrate prediction contracts on Kalshi, questioning the approval and regulatory logic behind some of these contracts. In response to these criticisms, Kalshi co-founder Luana Lopes Lara countered by asking whether CME has never experienced issues like market manipulation in its history. She argued that risks exist in both traditional and emerging markets, and the purpose of regulation is not to completely eliminate problems, but to detect them promptly when they arise and resolve them in the right way.