CFTC’s Pham Hosts Crypto Roundtable: “Get Back to Basics”

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Well, well, well! Looks like the Commodity Futures Trading Commission (CFTC) is finally jumping on the crypto bandwagon. Caroline Pham, the acting chair of the CFTC, has decided to “get back to basics” by hosting a series of roundtable talks with crypto industry leaders. And why, you ask? To address those pesky regulatory pain points, of course!

On Jan. 27, our dear Caroline announced that the regulator plans to engage with digital asset stakeholders to discuss market structure and prediction markets. Because, you know, the U.S. is all about that crypto adoption life now.

Innovation and new technology has created a renaissance in markets that presents new opportunities that are accessible to more people, as well as risks. The CFTC will get back to basics by hosting staff roundtables that will develop a robust administrative record with studies, data, expert reports, and public input.

Caroline Pham, acting CFTC chair

Now, this decision to include prediction markets in the roundtables might just reignite some speculation over the CFTC’s stance on the sector. You see, former chair Rostin Behnam was not a fan of prediction markets, calling them downright detrimental to public interest. But hey, maybe Caroline can change his mind with some good ol’ fashioned roundtable discussions.

Prediction markets like Polymarket and Kalshi gained prominence toward the end of last year. These platforms, which allow users to wager on real-world outcomes, became popular sources of electoral data, accurately predicting the winner of the general elections and several other races. But don’t worry, the CFTC is here to regulate all that fun stuff!

The CFTC previously sued Kalshi to halt its political betting contracts, initially winning in court. However, Kalshi eventually secured court approval to list its presidential outcome markets for U.S. customers. Notably, Polymarket remained unavailable to American users at the time of publication.

The roundtable discussions will occur over several months to align agency mandate with industry development, Pham said in her CFTC-issued statement. And who knows, maybe Caroline will become the permanent chair of the CFTC. Only time will tell!

Pham was selected to head the regulatory by President Donald Trump last week as part of the first official steps to overhaul anti-crypto sentiment entrenched in U.S. market watchdogs. While she is acting chair, Behnam will formally leave the commission on Feb. 7. Trump’s preferred nominee to succeed Behnam has not yet been announced, and it is unclear how long Pham will serve as acting chair.

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2025-01-27 22:20