- CME Group Chairman Terry Duffy and Kalshi co-founder Luana Lopes Lara clashed during a CFTC roundtable in Washington, D.C.
- Duffy singled out Kalshi while questioning whether prediction markets face the same regulatory scrutiny as established exchanges.
- The clash comes amid a fight between federal and state regulators over prediction markets.
A heated exchange erupted during a CFTC roundtable on prediction markets in Washington, D.C., when CME Group Chairman Terry Duffy and Kalshi co-founder Luana Lopes Lara clashed over market manipulation and regulation. The confrontation unfolded as executives debated how event contracts should be governed.
Duffy expressed serious concerns about prediction markets, arguing some contracts are vulnerable to manipulation. “We’re not a bunch of carnival barkers at a circus,” he said. “We are running the most envious markets in the world in the United States of America.”
He specifically mocked one of Kalshi’s contracts, a Nathan’s hot dog eating contest, questioning its economic value. Duffy also noted that CME’s proposed compute contracts remain under review while Kalshi’s similar offerings were approved.
Lara challenged Duffy, asking whether CME has ever faced market manipulation issues. “I just wanted to respond since we were called by name here,” she said.
Duffy responded, “If you’d like to have a debate, I’m happy to have a debate with you,” and later added, “I have more people in my regulatory department than you have in your whole company.” Lara fired back, “Maybe you should learn a bit about efficiency then.”
DraftKings CEO Jason Robins urged participants to stop attacking each other’s business models. “That doesn’t advance the discussion,” he said.
Prediction markets allow users to wager on event outcomes through futures contracts. The CFTC has proposed restrictions on certain contracts involving war, assassination, and sports proposition bets, citing manipulation risks.
The regulatory clash extends beyond the roundtable, with the CFTC taking legal action against states seeking to regulate event contracts under gambling laws. CFTC Chair Selig has warned states challenging the agency’s authority, stating, “We will see you in court.”
Meanwhile, Kalshi faces legal setbacks in several states, including a Washington judge ordering the company to stop offering contracts on sports, elections, and politics.
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