WASHINGTON, D.C.— Dennis Kelleher, Cofounder, President and CEO of Better Markets, issued the following statement on the filing of an amicus brief in support of the Commonwealth of Massachusetts’ authority to regulate Kalshi and other misleadingly named “prediction markets,” which are nothing more than illegal gambling apps:
“Reports of abusive and illegal insider trading on Kalshi and the other illegal gambling apps masquerading as prediction markets are becoming all too common. And yet, the CFTC—a small, chronically underfunded, understaffed, and ill-equipped federal financial regulatory agency—continues to use its very limited time, attention, and resources advocating for those unpoliced, unregulated online casinos and their shameless attempts to avoid state gambling laws to the detriment of all Americans. Worse, the CFTC is misleading the public by inaccurately claiming it can properly supervise, regulate, and police global gambling activities on everything from war and professional sports to elections and the possible return of Jesus Christ.
“The amicus brief details how Congress never intended to unleash nationwide gambling and certainly did not envision having the CFTC adopt the role of nationwide if not global gambling czar. That is why it never gave the CFTC the budget, staff, knowledge, or legal authority to do that. Our brief also highlights the many harms that unregulated gambling inflicts on the public, from the rampant insider trading that continues to make headlines and the surge in problem gambling and addiction, to corruption in everything from news and weather reporting and to elections and sports.
“Highlighting the fool’s errand that it is on, the CFTC is already doing a grossly deficient job regulating the multi-trillion-dollar commodities and derivatives markets—which is the agency’s core mission, and which is vital to all Americans. At a time when commodity prices are volatile, often skyrocketing, and making the affordability crisis worse, it is more important than ever for the CFTC to focus on regulating and policing those markets so that Americans can count on stable prices for the many goods they rely on, from gas to groceries. The CFTC needs to do its real job and leave gambling regulation to Massachusetts and the other states whose laws and regulations have protected the American public for decades and must be allowed to continue to do so.”
###
Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.
