The White House is reportedly weighing another candidate with connections to Kalshi for the position of chair of the Commodity Futures Trading Commission (CFTC).
According to Semafor, officials are vetting Josh Sterling, a lawyer at Milbank who has represented Kalshi in multiple state-level disputes.
Sterling, who previously worked at the CFTC between 2019 and 2021, has defended the view that sports event contracts offered by registered exchanges are legitimate financial products under the agency’s oversight.
He has also asserted that only the CFTC, not the courts, has authority to determine whether such contracts can be listed, dismissing arguments that their economic impact must be tested through litigation.
At the National Council of Legislators from Gaming States (NCLGS) Summer Meeting in July, Sterling was more direct about his perspective on speculation and risk.
“People are adults, and they’re allowed to spend their money however they want. And if they lose their shirt, that’s on them,” he said. “I mean, that would be obvious, right?”
Sterling has also shown support for Sleeper, the fantasy sports operator that filed a complaint against the CFTC after regulators blocked its attempt to register with the National Futures Association as a futures commission merchant.
In a recent LinkedIn post, published as the legal representative of Sleeper, Sterling accused the CFTC of “violating the law” by interfering.
He added that the agency’s decision was “undertaken at the direction, or at least with the full knowledge, of the CFTC’s Acting Chairman and sole Commissioner,” referring to Caroline D. Pham.
His positions have placed him in the middle of a contentious debate over how event contracts and prediction markets should be regulated in the US.
Kalshi being pulled toward the CFTC
If chosen, Sterling would follow another Kalshi-linked candidate considered for the same post, former CFTC commissioner Brian Quintenz.
Quintenz, a current Kalshi director and shareholder, was President Trump’s initial pick for the role. However, his candidacy has been hampered by conflict-of-interest concerns.
Emails showed his chief of staff requesting information from existing CFTC staff regarding exchange applications, which critics suggested could have affected Kalshi’s competitors.
Quintenz pledged to resign his board seat and divest shares if confirmed, but skepticism persisted.
Further complicating his chances, Bloomberg reported that Gemini founders Cameron and Tyler Winklevoss, both Trump donors, privately lobbied against Quintenz’s selection.
Though his nomination has not been formally withdrawn, the White House has since expanded its search.
In addition to Sterling, other names under review include Michael Selig, chief counsel to the Securities and Exchange Commission’s crypto task force, and Tyler Williams, counselor to Treasury Secretary Scott Bessent on digital asset policy.