Gary Gensler joins EconoFact Chat’s Executive Editor Micheal Klein to discuss ‘Online Prediction Markets: Benefits, Costs, and Regulation’.
Do online prediction markets like Kalshi and Polymarket provide a service beyond the entertainment of gambling? Why have these markets caught the public’s attention?
Is the Commodity Futures Trading Commission, the federal agency Gary once chaired, well-positioned to regulate these markets to guard against insider trading and market manipulation?
Did Congress even give the CFTC authority to oversee sports betting, contracts which make up the vast majority of prediction market revenues? Gary’s recent Supreme Court Amicus Brief gives a firsthand account – that Congress - in Response to the 2008 Financial Crisis — did not make the CFTC the nation’s sports betting regulator.
Listen in to Gary and Michael discuss the challenges of protecting those trading on these markets as well as the integrity of the underlying events — whether they be sports, political elections, or geo-political events.