The Commodity Futures Trading Commission (CFTC) will be down to one commissioner next week. Commissioner Kristin Johnson will exit the regulator just ahead of the NFL season, as new platforms seek entry into the world of CFTC-regulated event contracts.
Johnson said in May that she would leave “later this year,” but did not initially announce a final day. On Tuesday, though, the CFTC published her departure remarks, revealing that she will leave on Sept. 3. That will bring the regulator down to a single commissioner: Acting Chair Caroline Pham.
Summer Mersinger and Christy Goldsmith Romero both left their roles as commissioners at the end of May, while previous Chair Rostin Behnam left in February.
The Commission may soon get a full-time leader who will replace Pham, if the Senate advances Brian Quintenz’s nomination.
Quintenz’s nomination to the post has been delayed, with the Senate Committee on Agriculture, Nutrition & Forestry twice pushing back a vote on whether to recommend him.
The second pause came at the request of the White House, reportedly following advice from crypto entrepreneurs Cameron and Tyler Winklevoss.
Among the Winklevoss twins’ reported complaints about Quintenz are that his efforts to increase the CFTC’s budget and manpower are at odds with the president’s goals.
In her departing comments, Johnson appeared to support efforts to create a stronger CFTC.
She said she was “concerned that the expert staff at the Commission receive the support and investments needed to be successful,” given “significant changes” that are being considered, such as the CFTC overseeing cryptocurrency.
“In advancing an agenda in the name of growth, it is critical not to dismantle the foundational resilience that supports financial stability and protects the broader economy,” she said.
Week 1 could be busy
Johnson’s departure means Pham will be the only CFTC commissioner during what could be a busy week in the world of prediction markets just before the start of the NFL season.
Polymarket, which is awaiting CFTC checks for its new U.S. rulebook and systems, has pointed to the start of the NFL season for launch. The platform isn’t currently allowed in the U.S., but acquired CFTC-registered exchange QCEX last month.
Traditional sportsbook operators have also been considering getting into the world of prediction markets, though a launch to coincide with the start of the NFL season seems less likely. FanDuel last week announced a partnership with commodities exchange CME to offer event contracts for non-sporting events, while DraftKings has a pending application with the National Futures Association, which could be a first step towards launching an exchange of its own.
Meanwhile, incumbent Kalshi may offer its first player prop bets, and perhaps even parlays. It self-certified to offer touchdown-scorer markets, alongside point spreads and totals, earlier this month. While it has already offered spreads and totals for preseason games, it has not yet offered any prop bets. Established stars typically have a reduced role in preseason, especially during the last week of games, meaning that Kalshi may be waiting for the regular season to offer props.
