Published on: January 8, 2025, 10:09h.
Last updated on: January 8, 2025, 10:16h.
The head of the federal agency overseeing derivatives markets, including betting on politics, is stepping down.
Rostin Behnam, a Democrat and former attorney, was appointed to the CFTC in 2017, and became chair in 2021. He has opposed online betting exchanges facilitating contracts on political events and elections.
Behnam will leave his position effective February 7, as Trump returns to Washington, DC.
“I am pleased to leave the CFTC and the derivatives markets stronger than ever. Our staff has demonstrated organizational drive and operational effectiveness. We have welcomed new opportunities to modernize, build capabilities, and, with the support of the Congress, incorporate the innovations shaping our markets,” Behnam concluded.
Behnam’s departure may mean less regulation for peer-to-peer wagering sites like Kalshi, as he had been a strong opponent of prediction wagering on elections.
Trump, known for his background in casinos, is expected to appoint a more conservative chair to the CFTC who supports less federal oversight in the market.
Trump and the Polls
Trump has a history of distrusting polls, as they have often shown him behind. Even though polls were correct in predicting his loss in 2020, they underestimated Biden’s margin.
In 2016, despite polls favoring his opponent, Trump won. Polls in 2020 also underestimated his support.
In the last election, while polls indicated a close race, betting markets favored Trump to win easily.