Markets and industry experts continue to monitor potential nominees for Commodity Futures Trading Commission (CFTC) chair. News recently broke that the White House is vetting former senior CFTC official Josh Sterling for the position. Sterling is currently a partner at Milbank and represents CFTC-regulated prediction market platform Kalshi in its case against three US states: Nevada, Maryland, and New Jersey.
Sterling emerged as the newest contender for the role after original nominee, Brian Quintenz’s nomination stalled amid opposition due to his ties with Kalshi and possibly due to urging from the Winklevoss twins.
Other potential nominees included Securities and Exchange Commission chair Paul Atkins. However, in a September 24 interview with Punchbowl News, the politician said he was not interested in the position. Instead, Atkins highlighted the need to harmonize the CFTC and SEC as a way forward and “not a merger.”
Kalshi lawyer Josh Sterling next in line for CFTC Chair
Josh Sterling is allegedly the next candidate nominated to head the CFTC. Sterling worked at the CFTC between 2019 and 2021, during Trump’s first presidency, where he oversaw the Market Participants Division.
Sterling has a long-standing reputation amid prediction market circles and has represented Kalshi in several lawsuits. During a National Council of Legislators from Gaming States (NCLGS) Summer Meeting in July, Sterling noted that prediction markets should not be held responsible for customers facing losses.
I was at the NCLGS panel with Josh Sterling this summer.
He is a fierce believer in federal preemption vis a vis sports contracts. Also considers financial losses traders’ personal responsibility and praised the CFTC’s market-led approach.
Ticks lots of boxes for the industry https://t.co/dxvkFbQVQa
— Chris Gerlacher (@GerlacherC) September 24, 2025
Sterling’s return to the CFTC could signal a more favorable regulatory climate for prediction markets. That goes particularly for those seeking clarity on listing event contracts tied to politically or financially sensitive topics. Given his recent legal advocacy for Kalshi, his appointment may also revive discussions around federal preemption.
On the other hand, his close ties to Kalshi could also raise questions about how the CFTC would balance market growth with consumer protection under his leadership.
Adding to the complexity, former SEC chief of staff, Amanda Fischer, noted that Sterling previously spoke out about receiving a death threat at his firm after a Winklevoss twin, upset over the hiring of an ex-SEC official, allegedly posted location details of a company event.
Interesting that Josh Sterling is being considered after what happened with Quintenz. Sterling has spoken out about a death threat received at his firm after a Winklevoss twin, mad about an ex-SEC official being hired there, posted location details about a firm event. https://t.co/Sd266epjSM
— Amanda Fischer (@amandalfischer) September 23, 2025
Paul Atkins denies nomination as CFTC Chair
Paul Atkins’ nomination to head the CFTC was also met with some criticism, due to his existing role in the SEC. Speculations emerged over the implications of one individual holding top positions in both agencies, raising concerns over potential conflicts of interest and the concentration of regulatory power across a broad range of financial markets, including the oversight of prediction markets.
Speaking with Prediction News, Les Borsai, the co-founder of Wave Digital Assets, said that appointing a single chair could help resolve disputes over digital asset regulation. This could also potentially speed up legislative clarity, especially for outstanding crypto laws such as the Clarity Act. However, it could also raise concerns over conflict of interest.
“In practice, such an arrangement might streamline rules and enforcement, but it would also test whether clarity comes at the cost of balanced oversight.”
On Sept. 29, the SEC and CFTC are planning to hold a joint roundtable “on regulatory harmonization efforts” that will focus on a number of financial products, including digital assets and prediction markets.
“We should work together to provide clarity for innovators that want to list event contracts on prediction markets responsibly, including those based on securities. The SEC and CFTC should examine opportunities to collaborate to consider where event contracts may be made available to U.S. market participants regardless of where the jurisdictional lines fall.”
