Tensions Flare as CME, Kalshi Execs Clash Over Prediction Markets in DC
A CFTC roundtable on prediction markets became confrontational when CME Group chairman Terry Duffy criticized event contracts as vulnerable to manipulation and mocked Kalshi’s offerings. Kalshi co-founder Luana Lopes Lara pushed back, questioning CME’s own market-manipulation record and arguing that every market has risks that regulation should address. Duffy and Lara exchanged further jabs over credibility and efficiency before the moderator intervened. DraftKings CEO Jason Robins later urged participants to stop attacking competitors’ business models. The clash came amid a broader regulatory fight over whether prediction markets are federally regulated derivatives or state-regulated gambling products. The CFTC, led by Chair Selig, has defended its authority and pursued legal action against states. Recent proposals would restrict some sensitive event contracts, and Kalshi continues to face state-level legal challenges over sports, elections, and other event markets.
