The prediction market industry is facing a regulatory crucible, and the battle lines are quickly taking shape in Washington.
On Wednesday, the newly minted Coalition for Prediction Markets (CPM) brought significant regulatory firepower into its ranks, appointing former Commodity Futures Trading Commission (CFTC) Commissioner Brian Quintenz as a senior advisor. The move comes as event contract platforms aggressively lobby for federal legitimacy while simultaneously fending off mounting state-level scrutiny.
For Quintenz, the appointment marks a swift return to the prediction market arena following a turbulent—and ultimately derailed—bid to lead the exact federal agency tasked with regulating the space.
A Bipartisan Strategy for Prediction Market Operators
The CPM isn’t operating quietly. The lobbying group has amassed a heavyweight roster of industry operators, including Kalshi, Crypto.com, Coinbase, Robinhood, and Underdog. Its leadership reflects a heavily bipartisan strategy designed to sway lawmakers on both sides of the aisle.
Quintenz—a Republican who served as a CFTC commissioner from 2017 to 2021 and formerly operated as the global head of policy at Andreessen Horowitz’s crypto division (a16z)—joins former Republican House Financial Services Committee Chairman Patrick McHenry as a senior advisor. Steering the entire operation is former Democratic Congressman Sean Patrick Maloney, who serves as the coalition’s president.
Quintenz framed his involvement as a defense of retail access to data-driven financial tools.
“Regulated prediction markets have created a new information economy built on radical transparency, fairness, and real opportunity for people on Main Street – not just institutions on Wall Street,” Quintenz stated regarding his appointment. “I’m thrilled to continue my work to ensure these markets grow here in the United States through a federal regulatory framework that keeps American markets the best in the world.”
Also read: Is Kalshi Legit? A Deep Dive into America’s Regulated Prediction Market (2026)
The Derailed CFTC Chair Nomination
Quintenz’s arrival at the CPM carries intense political baggage.
In February 2025, President Donald Trump nominated Quintenz to serve as the next Chairman of the CFTC. By the fall, the White House abruptly withdrew the nomination.
What happened? A fierce, multi-front opposition campaign.
Crypto billionaires Cameron and Tyler Winklevoss reportedly flexed their political muscle to sink the confirmation. According to private messages Quintenz later shared publicly on X, Tyler Winklevoss sought assurances that a Quintenz-led CFTC would reconsider a previous regulatory settlement with their exchange, Gemini. When Quintenz refused to make that commitment, the brothers actively lobbied against him.
The resistance didn’t just come from the crypto sector. The American Gaming Association and various tribal casino operators voiced severe concerns over Quintenz’s confirmation. Their alarm stemmed from statements he made during a June Senate subcommittee hearing, where he expressed favorable views toward prediction markets offering sports-related event contracts—a direct threat to the market share of traditional sportsbooks.
Also read: Kalshi Loses NY Injunction Bid: Judge Rules State Gambling Laws Apply to Prediction Markets
Wall Street and State Regulators Tighten the Screws
Quintenz assumes his advisory role at a critical inflection point for the sector. While the CPM pushes for sweeping federal guidelines, pushback is escalating everywhere else.
Financial institutions are increasingly nervous about the optics and ethics of event betting. Goldman Sachs recently imposed strict internal bans on employees trading certain event contracts, threatening termination and the forfeiture of profits over $200 for violations.
State-level crackdowns are also accelerating. Arizona Governor Katie Hobbs recently banned insider trading on prediction markets, while state lawmakers across the country debate how to curb sports-based prediction contracts. Meanwhile, Polymarket, a major offshore player, is currently facing inquiries from US senators over allegations that the platform paid millions to online content creators to stage fake bets as part of a deceptive marketing campaign.
By adding Quintenz to its war room, the Coalition for Prediction Markets is signaling that it won’t back down from these regulatory skirmishes. The objective is clear: drag prediction markets out of the gray area and firmly into the American financial mainstream.
Sources Quoted:
Data, quotes, and chronological timelines were extracted from recent industry reporting by GamblingNews (Stefan Velikov), SBC Americas, CDC Gaming, and Gaming Intelligence.