Congresswoman Dina Titus said the public deserves answers on whether the CFTC’s chair nominee Brian Quintenz has breached ethics rules in a new open letter.
Rep. Titus has called for an inquiry into whether Commodity Futures Trading Commission (CFTC) chair nominee Quintenz violated ethics rules or agency policies in the lead-up to his confirmation, citing his financial interest in Kalshi and potential involvement in decisions affecting prediction markets.
The news follows repeated delays in Quintenz’s Senate nomination vote, including reportedly one time at the direction of the White House, although a spokesperson has said the administration remains behind the former CFTC commissioner and Kalshi board member.
In a letter sent to CFTC acting chairwoman Caroline Pham on 4 August, Titus requested that the regulator release all communications from or about Quintenz relating to event contracts and prediction markets.
Some have used the words “regulatory capture” to describe Quintenz’s nomination, who they believe is inclined to treat Kalshi favourably.
She noted Quintenz currently holds stock options and a board seat with Kalshi, which has pioneered sports event contracts.
Titus, who co-chairs the Congressional Gaming Caucus and represents Nevada’s First Congressional District, raised concerns over whether Quintenz had improperly sought information about Kalshi’s competitors or participated in relevant decisions before his confirmation.
Her request follows a Freedom of Information Act disclosure that suggested Quintenz may have done so.
The letter said: “In his letter to the CFTC describing the steps he will take to avoid conflicts of interest and ethical concerns, Mr. Quintenz wrote, ‘I will not participate personally and substantially in any particular matter that to my knowledge has a direct and predictable effect on the financial interests of [Kalshi]…’
“Mr. Quintenz also wrote that he will not participate in any matter involving Kalshi for one year. Despite this pledge, a recent Freedom of Information Act request from The Closing Line indicates that Mr. Quintenz has sought information regarding Kalshi’s competitors and that he may be involved in agency decision-making prior to his Senate confirmation.”
Titus questions CFTC transparency
The congresswoman said she was concerned the CFTC was failing to act transparently, pointing to the cancellation of a previously announced public roundtable, an unanswered petition, and the approval of contracts on sporting events she described as “illegal gambling.”
Titus also cast doubt on Quintenz’s ability to recuse himself from Kalshi matters.
She said: “As Mr. Quintenz may be the only commissioner of the CFTC for some time, it seems impractical to believe that he will not make any decisions involving Kalshi for one year, considering the vast amount of regulatory and legal action concerning prediction markets.
“Furthermore, regulatory inaction is of material benefit to Kalshi.”
She called for the release of any internal CFTC communications involving Quintenz and his expected chief of staff Kevin Webb regarding prediction markets, including potential attempts to route messages through private email accounts.
To ensure accountability, she also requested that inspector general Christopher Skinner and designated agency ethics official John Einstman oversee the release and investigate any potential violations of law or CFTC rules, including improper ex parte communications.
“As the Senate considers Mr. Quintenz’s nomination to chair this important agency, it is imperative that the public fully understand the extent of his involvement regulating a sector in which he has a substantial financial interest.
“I am concerned that as Chair he will not uphold both his own ethical pledge and other laws and regulations related to conflicts of interest.”
Last week, it was revealed that the crypto billionaire Winklevoss twins, famous for their depiction in The Social Network, have reportedly also lobbied president Donald Trump to ditch Quintenz due to their view he would not sufficiently shake up the US derivatives regulator.