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CFTC commissioner warns of oversight gaps in prediction markets

Regulation

Outgoing CFTC commissioner Kristin Johnson warned in a farewell address that the commission has limited safeguards and visibility over prediction markets. She called for clear expectations as firms offer retail-facing contracts, including products that may use leverage or margin; state regulators and operators are also involved in disputes over how sports prediction markets should be classified.

Her warning underscores regulatory uncertainty for firms offering sports-related prediction products to US customers.

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Regulation

Kalshi CEO says state oversight would push prediction markets offshore

Kalshi chief executive Tarek Mansour said state regulation of prediction markets would drive the industry out of the US rather than resolve the state-versus-federal dispute. Speaking at DC Fintech Week, he said the choice is whether prediction markets exist in the US or go offshore, and defended Kalshi's sports-event contracts as federally regulated financial contracts.

Kalshi chief executive Tarek Mansour warned that letting individual states oversee prediction markets would drive the sector abroad instead of resolving the tug-of-war between state and federal authorities, according to reporting by Complete iGaming. At DC Fintech Week, he framed the matter as a binary: either such markets operate inside the US or they relocate overseas.

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