Quintenz vows to divest Kalshi stake if confirmed as CFTC chair
In ethics filings accompanying his nomination as Commodity Futures Trading Commission (CFTC) chairman, Brian Quintenz has pledged to sever all ties with Kalshi, the prediction-market platform where he is a board member. Quintenz told agency ethics officials he will resign from the Kalshi board and sell any Kalshi equity and options “as soon as practicable, but not later than 90 days after my confirmation”. He also agreed to forfeit any unvested Kalshi options and to recuse himself from Kalshi-related matters until the divestment is complete. These commitments are intended to eliminate conflicts of interest should Quintenz be approved by the Senate to lead the CFTC.
Quintenz’s confirms his Kalshi connection. He “will resign from [his] position” at Kalshi and holds stock and monthly-vesting options in the firm. In a May 21 ethics agreement to CFTC officials, he wrote that any vested Kalshi shares or options will be sold “not later than 90 days after my confirmation”. Until then, he vowed not to “participate personally and substantially” in any CFTC matter directly affecting Kalshi’s financial interests. He will also submit to a one-year post-divestiture recusal: for a year after leaving Kalshi, he will avoid “any particular matter involving specific parties in which I know KalshiEx is a party”. In addition to Kalshi, Quintenz’s filings say he plans to leave all private roles (including a crypto policy post at Andreessen Horowitz) and divest other conflicting crypto and prediction-market holdings within 90 days of confirmation. As one disclosure summary put it, he “will resign from all positions and divest all conflicting assets within 90 days of his confirmation”.
Quintenz’s ethical pledges were highlighted in reports as he prepared for a confirmation hearing. He has told reporters he will step down from Kalshi’s board upon confirmation. Agency ethics staff will vet his commitments to ensure compliance with the criminal conflict-of-interest law (18 U.S.C. §208) and the impartiality standards (5 C.F.R. §2635) that cover incoming officials. In practice, Quintenz’s letter to the ethics official reads like a binding promise: “I will divest any vested stock options and stock in KalshiEx as soon as practicable, but not later than 90 days after my confirmation”. He stressed he has confirmed it is feasible to carry out those divestitures in the prescribed timeframe. (For context, Kalshi’s share value on disclosure is modest – board members report Kalshi stock in ranges of roughly $100,000–$500,000 – but the stake is politically sensitive given the firm’s high-profile contracts.)
Background: Quintenz’s Kalshi ties and the platform’s regulatory battles
Quintenz’s connection to Kalshi predates his nomination. He is officially a Kalshi board member and equity holder. His tenure at Kalshi has raised eyebrows because Kalshi operates on the edge of regulated financial markets and gambling. The company, based in New York and founded by technologists, offers “event contracts” on outcomes ranging from election results to economic indicators – and more recently, sporting events. Kalshi’s visibility has surged amid major political and sports events. The CEO has boasted that betting on elections and games should be treated like trading on a federal exchange, saying “the CFTC is our regulator” and pledging, “If the CFTC tells us to stop, we will absolutely stop. If they don’t, then we won’t”.
Under prior CFTC leadership, Kalshi’s plan to offer cash-settled election contracts ran into a legal wall: the agency denied the contracts in 2023 as improper gaming. Kalshi sued and eventually won in court. In early May 2025, the CFTC unexpectedly dropped its appeal of that case. The regulator formally filed to dismiss its challenge of Kalshi’s U.S. election contracts, effectively greenlighting those markets. Kalshi CEO Tarek Mansour hailed the move as proof that “election markets are here to stay…This win solidifies their right to exist and thrive”. Notably, Sigma 바카라 analysts observed this policy shift coincided with personnel changes in the Trump administration – including the nomination of “a former Kalshi board member as the upcoming chairman of CFTC”, a clear reference to Quintenz.
Surge in sports betting
The Kalshi saga grew even more contentious when the firm branched into sports. Last year Kalshi unveiled a series of granular sports-event contracts (for example, player “win totals” in the NFL). State gaming regulators and traditional sportsbooks cried foul, arguing Kalshi was skirting state gambling laws by repackaging sports bets as federally regulated futures. Several states issued cease-and-desist orders against Kalshi. For instance, New Jersey’s 바카라 industry filed a brief accusing Kalshi of violating the Wire Act and CFTC Rule 40.11(a) (which bars so-called “gaming” event contracts). Nevada regulators likewise moved to block Kalshi, claiming the interstate transmission of its sports bets ran afoul of federal anti-wagering laws. Maryland and others joined the fray in spring 2025, each contending Kalshi’s sports markets were illegal, unlicensed sports gambling. Kalshi responded by suing regulators in federal court, maintaining that the Commodity Exchange Act pre-empts state gambling laws and that only the CFTC (not state officials) may police its markets.
In short, Kalshi finds itself at the center of a regulatory tug-of-war. Federal agencies and states are grappling with a novel question: Are Kalshi’s sports-event contracts financial derivatives subject to CFTC oversight, or unlawful bets subject to state control? The answer remains unsettled. A scheduled CFTC “roundtable on prediction markets” in April 2025 was mysteriously cancelled, reflecting the uncertainty. Kalshi continues to operate its existing markets, and it touts strong political connections – including Trump family adviser Donald Trump Jr. on the board and, until now, Quintenz himself.
Quintenz’s divestment pledge comes amid these controversies. It removes an obvious lated rulemaking. The broader significance is clear: Kalshi’s fortunes and regulatory status may be influenced by who leads the CFTC, and Quintenz – once confirmed – will do so with an obligation to have fully “divested [his] equity interests in Kalshi” as promised.
