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Utah filed criminal charges against Kalshi and two executives over alleged illegal gambling, while the CFTC claims federal authority over prediction markets. David Bennett backs Utah’s argument that relabeling bets as derivatives does not change their nature.
The CFTC sued Utah after Utah challenged Kalshi over alleged illegal gambling, asserting federal authority over prediction-market derivatives. Michael Selig called the CFTC's jurisdiction exclusive; David Bennett argues sports-outcome contracts are bets, while Utah says the platforms evade state gambling laws and taxes.
The CFTC is investigating whether Polymarket violated its settlement commitment to block U.S. users from its overseas platform. David Bennett says Kalshi can operate in the United States while Polymarket cannot, and rejects classifying sports wagers as derivatives; he sees poker as different because players influence outcomes.
Chris Giancarlo says the CFTC’s first Bitcoin futures gave the agency time to build surveillance and understand the market before approving related products. He describes the resulting regulated futures market as deep, liquid, transparent, and policed against fraud and manipulation.
Chris Giancarlo says perpetual futures are compatible with the CFTC’s remit and do not pose a major conceptual leap: rolling settlements extend the financial futures model beyond fixed expirations. He favors bringing retail perp trading onshore through fully licensed exchanges and says decentralized venues such as Hyperliquid raise harder policy questions.
Chris Giancarlo hired Mike Selig as a law clerk, later recruited him to build Wilkie’s digital assets practice, and supported Selig’s move to the SEC and appointment as CFTC chair. Giancarlo says Selig shares his view that digital assets can support U.S. capital formation and innovation.
Chris Giancarlo traces his interest in blockchain to the 2008 crisis: opaque credit-default-swap exposures made officials fear Lehman’s failure could trigger $400 billion in payouts. CFTC research later estimated net payouts below $9 billion, and Giancarlo argues a shared ledger could expose such risks earlier.
The host argued that the administration is deliberately building a new monetary and regulatory framework, citing the GENIUS Act and rulemaking at the OCC, SEC, and CFTC. The host pointed to Bessent’s reference to 1863 and the administration’s rapid progress as evidence of a strategic plan, while John Arnold called the broader thesis speculative.