The Commodity Futures Trading Commission (CFTC) announced it is introducing an Innovation Advisory Committee (IAC), which includes prominent figures from across the prediction market space.
Key Takeaways
- The Commodity Futures Trading Commission formed a 35-member Innovation Advisory Committee.
- Included are leaders from prediction markets and major sportsbooks, among other significant financial figures.
- The inclusion of prediction market executives could signal an increase in federal government support despite ongoing legal challenges to the legality of the products.
The 35-member group will include CEOs and presidents from various companies, including Shayne Coplan and Tarek Mansour, CEOs of prediction market giants Polymarket and Kalshi, respectively. Also named were Christian Genetski, president of FanDuel, and Jason Robins, CEO of DraftKings, as both sports betting behemoths enter the world of event contracts.
The group also includes leaders from various blockchain enterprises, as well as major stock market leaders, including Adena Friedman, chair and CEO of the Nasdaq.
“Today marks an important and energizing moment at the CFTC as the Innovation Advisory Committee takes shape,” CFTC chairman Michael Selig said. “The IAC’s work will help ensure the CFTC’s decisions reflect market realities so the agency can future-proof its markets and develop clear rules of the road for the Golden Age of American Financial Markets.”
The IAC will serve as a resource as innovations such as artificial intelligence and blockchain continue to “transform markets.”
“America is home to the most transparent and well-regulated financial markets in the world, but we cannot assume that this will always be the case,” Chairman Selig said. “By bringing together participants from every corner of the marketplace, the IAC will be a major asset for the Commission as we work to modernize our rules and regulations for the innovations of today and tomorrow.”
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Major implications for prediction markets
While the committee is chock-full of influential figures in tech and finance, the inclusion of Coplan and Mansour, as well as other figures from the world of betting markets, appears to be a major declaration that the United States is prepared to lean into prediction markets.
The move comes amid their continued broad adoption, most recently demonstrated by a dip in sportsbook action during the Super Bowl, as well as continued partnerships around major leagues, including the NHL and MLB.
The creation of the IAC follows a continued wave of pushback across numerous states as legal action nationwide continues to pop up against Kalshi and Polymarket.
Earlier this month, New York Attorney General Letitia James argued prediction markets are ostensibly allowing for “unregulated gambling” and leaving consumers at major risk.
