CME chief Terry Duffy clashes with CFTC chair and avoids prediction markets
CME Group CEO Terry Duffy clashed with CFTC Chair Rostin Behnam over prediction markets at a Thursday hearing covering crypto, artificial intelligence, and event contracts. Duffy used his speaking time to attack event contracts specifically. In a separate interview with Crain's Chicago Business, Duffy explained CME's strategy of catering to retail traders on its own terms rather than entering the event-contract space.
Duffy's twin messages sharpen the threat to Kalshi's expansion into traditional futures territory. CME already opposes Kalshi's pending CFTC filing for stock index and copper perpetual futures, and Duffy's public attack on event contracts signals that political pressure will complement legal arguments. For Kalshi, this means fighting on two fronts: the formal regulatory review process and a floor fight for regulatory culture at the CFTC itself.
Polymarket faces collateral damage, since Duffy's framing of event contracts as suspect stains the entire category. Neither platform can count on the CFTC chair's support holding against the largest futures exchange in the world. The hearing gives Congress a visible industry split to exploit in any legislation restricting sports event contracts.