Titus pointed to concerns that Quintenz, who serves on Kalshi’s board and holds stock options, may have sought competitive intelligence and influenced CFTC decisions before his official confirmation. With Acting Chair Caroline Pham and Commissioner Kristin Johnson set to depart, Titus warned that Quintenz could soon be the sole decision-maker at the agency, raising serious ethical concerns. Meanwhile, the CFTC is pushing forward with a new initiative to enable the trading of spot crypto asset contracts on registered futures exchanges. This is part of a “crypto sprint” to implement 18 recommendations from President Trump’s Working Group on Digital Asset Markets.
Brian Quintenz CFTC Bid Questioned
Democratic Representative Dina Titus called on the Commodity Futures Trading Commission (CFTC) to investigate its nominated chair, Brian Quintenz, over potential conflicts of interest related to his ties with Kalshi, a prediction market platform regulated by the agency. In a letter to Acting Chair Caroline Pham, Titus urged the CFTC to examine whether Quintenz may have violated internal policies, federal statutes, or his ethical pledge before his Senate confirmation. She also demanded the release of all relevant communications between Quintenz and the agency, particularly those concerning prediction markets and event contracts.
Titus pointed out that Quintenz currently serves on Kalshi’s board and holds stock options in the firm. A recent Freedom of Information Act request revealed that he asked for information about Kalshi’s competitors and may have participated in CFTC decision-making before being officially confirmed. These revelations came up after multiple delays to a Senate Agriculture Committee hearing on Quintenz’s nomination, which the White House postponed.
In her letter, Titus warned that regulatory decisions under Quintenz could affect states’ rights to regulate and tax gambling. She also pointed to concerns she raised on social media and in congressional statements. She argued that event contracts on sports amount to illegal gambling and circumvent state-level oversight and consumer protection measures.
Part of the letter that was sent to Chair Caroline Pham
Titus is also sceptical about Quintenz’s promises to recuse himself from Kalshi-related matters. Quintenz said he would resign from Kalshi, divest his shares, and avoid involvement with the company for one year if confirmed.
However, Titus mentioned that Quintenz could soon be the only commissioner at the CFTC, after announcements that both Pham and Commissioner Kristin Johnson plan to step down. With no other commissioners in place, she believes it is unrealistic to expect that Quintenz would not have to deal with issues affecting Kalshi, and added that any regulatory inaction would directly benefit the firm.
Adding to the controversy, recent reports suggest that Cameron and Tyler Winklevoss, co-founders of crypto exchange Gemini, reversed their support for Quintenz. Although they initially endorsed him as a strong pick to lead the CFTC, they reportedly told President Donald Trump that Quintenz will not sufficiently advance the administration’s crypto agenda.
They criticized his June testimony, in which he suggested that the CFTC needs a larger budget to handle its expanding responsibilities in the digital asset sector.
CFTC Launches Bid to Enable Crypto Spot Trading
Meanwhile, the CFTC launched a new initiative that is specifically aimed at allowing the trading of “spot crypto asset contracts” on CFTC-registered futures exchanges. This move is part of the agency’s “crypto sprint” program, which is designed to implement 18 key recommendations from President Donald Trump’s Working Group on Digital Asset Markets.
The recommendations were released last week, and call for clearer regulatory guidance on how cryptocurrencies can be treated as commodities, how decentralized finance participants can navigate CFTC requirements, and how blockchain-based derivatives might be accommodated under existing rules.
Acting CFTC Chair Caroline Pham confirmed the initiative in a statement on Monday, and stated that the commission is moving “full speed ahead” in collaboration with the SEC’s own initiative, Project Crypto. She explained that the CFTC is focused on fast-tracking a solution to allow the immediate trading of digital assets at the federal level. Spot crypto asset contracts will closely resemble futures-style listed contracts that track real-time spot prices and be traded on designated contract markets (DCMs) registered with the CFTC.
As part of this effort, the CFTC is requesting public feedback on the legal and regulatory application of section 2(c)(2)(D) of the Commodity Exchange Act and Part 40 of its own regulations. Section 2(c)(2)(D) lays out the framework for retail commodity transactions that involve leverage or margin trading, mandating that these must occur on a registered DCM.
Part 40, meanwhile, addresses the operational and compliance obligations of these designated exchanges. The commission is also inviting input on how securities laws might interact with such contracts, especially in cases where non-security crypto assets may still fall under the SEC’s investment contract framework. The comment period is open until Aug. 18.
The CFTC’s renewed push is happening at a time of internal instability, with only two commissioners currently serving. Johnson is expected to depart later this year, and several others, including former Chair Rostin Behnam, stepped down earlier in 2025. Despite this uncertainty at the leadership level, the CFTC still seems very committed to pressing forward with its digital asset agenda.
Chairman Rostin Behnam announces departure from CFTC
