alt Hacker NewsThe CFTC, since Trump, has become entirely corrupt. Note that the proliferation of sports gambling in prediction markets, which is explicitly illegal, largely exists because the CFTC refuses to enforce their own legal mandate against Kalshi and Polymarket.
It’s actually worse; when states try to shut down sports betting in prediction markets, the CFTC fights on behalf of Kalshi with the reasoning that only the federal government has the mandate to regular futures and prediction markets. And then they refuse to regulate!
The CFTC is supposed to have 5 chairs, with no more than 3 in the same party. The administration has gotten around this rule by simply removing 4 of the commissioners and then refusing to appoint replacements. In effect, the CFTC has only 1 republican chair and no opposite party representation. The level of corruption is staggering.
Replies
Not to mention that Trump Jr is an advisor to both Kalshi (YC19) and Polymarket.
> sports gambling in prediction markets, which is explicitly illegal
It’s a bit more complicated than that. The CFTC argues that under Dodd-Frank any bet on a future event that can have economic consequences is regulated by the CFTC.
It’s a bit silly because this obviously wasn’t the intention of the legislation, and it would also mean anyone betting outside a CFTC regulated exchange is in illegality. But it’s valid enough that The case will probably go to the Supreme Court.