The White House has unexpectedly pulled back Brian Quintenz's nomination to chair the Commodity Futures Trading Commission (CFTC). The surprise turn of events disrupts what many thought would be a smooth path to confirmation.
Key Takeaways
- The White House has withdrawn Brian Quintenz's CFTC nomination despite broad industry support
- Gemini's founders reportedly influenced the decision, leaving the agency without a nominee
- Potential replacements include SEC and Treasury crypto officials, former CFTC leaders, and private sector attorneys
Quintenz, who previously served as a CFTC commissioner, later worked at Andreessen Horowitz and prediction market operator Kalshi. His ties to both traditional finance and digital assets had made him a favored candidate among industry supporters.
The reversal, first reported by Politico and later confirmed by Bloomberg, is said to have been influenced by leaders of Gemini, the cryptocurrency exchange.
With Quintenz out, the administration must now find a new candidate to oversee the regulator at a time when crypto and derivatives oversight are at a critical stage.
Names under review include Mike Selig, chief counsel at the SEC's crypto task force; Tyler Williams, who advises Treasury Secretary Scott Bessent on digital asset policy; Milbank partner and former CFTC official Josh Sterling; and ex-commissioner Jill Sommers.
The choices reflect a mix of crypto-focused expertise and broader financial regulation backgrounds.
Kalshi and Polymarket join SEC-CFTC panel
After Quintenz's drop-out, focus was on a star panel that included the founders of prediction markets Kalshi and Polymarket. Organized by the SEC and CFTC, the Sept. 30 conference was about "regulatory harmonization" and how it might foster innovation while protecting investors.
Kalshi co-founder Tarek Mansour and Polymarket founder Shayne Coplan took the stage alongside other CEOs, such as Kraken co-CEO Arjun Sethi. Their inclusion reflects an increasing mainstream tolerance of prediction markets among financial discourse.
While the panel did not specifically address sports event contracts, the presence of representatives of these platforms signaled that regulators are no longer questioning the basic legitimacy of the market.
Separately, however, the CFTC cautioned that sports-related prediction contracts could face termination depending on state-level legal actions, though it stopped short of announcing any immediate enforcement.
Sleeper files lawsuit against CFTC
Regulatory disputes intensified further as fantasy sports operator Sleeper filed a lawsuit against the CFTC and Acting Chair Caroline Pham. The company alleged the regulator unlawfully blocked its futures commission merchant (FCM) license application, despite the National Futures Association (NFA) confirming in August that the filing was complete and first in line for approval.
Sleeper argued the CFTC's intervention unfairly advantaged competitors, pointing to PrizePicks receiving approval during the same period. The company said it had followed all requirements and met deadlines since submitting its application in May. According to the complaint, the CFTC stopped the NFA from granting the license without explanation, leaving the process stalled.
Filed in the U.S. District Court for the District of Columbia, the suit marks Sleeper's first legal challenge in its ten-year history. Represented by Milbank, the company is seeking a court order preventing further CFTC interference and a ruling that it qualifies for registration under the Commodity Exchange Act.
