Brian Quintenz has vowed to step down from his role on Kalshi’s board of directors should he be named the new chair of the Commodity Futures Trading Commission (CFTC).
Quintenz has served on the board of the prediction markets platform since November 2021, in addition to working on Crypto.com’s advisory council between November 2021 and November 2022.
He is also President Donald Trump’s nominated choice to take over as the new head of the derivatives regulator, where he currently works as a commissioner.
In a letter to the office of the general counsel for CFTC, addressed to deputy general counsel John Einstman, Quintenz detailed that he would avoid any conflicts of interest as he prepares to take on the role.
He wrote: “Upon confirmation, I will resign from my position with KalshiEx. I hold stock and unvested stock options, which vest on a monthly basis, with KalshiEx. I do not hold any other equity interest in KalshiEx.
“I will forfeit all KalshiEx stock options that are unvested at the time of my resignation. I will divest any vested stock options and stock in KalshiEx as soon as practicable, but not later than 90 days after my confirmation.
“If I divest the stock options by exercising them, I will divest the resulting stock as soon as practicable but not later than 90 days after my confirmation.
“I will not participate personally and substantially in any particular matter that to my knowledge has a direct and predictable effect on the financial interests of this entity until I have divested it.”
Quintenz acknowledged that his interests also extend to any spouse or children, and “any general partner of a partnership in which I am a limited or general partner”.
Potential conflicts of interest could come via any organisation where Quintenz serves as an officer, director, trustee, general partner or employee, as well as any person or organisation with which he is negotiating or has “an arrangement concerning prospective employment”.
Quintenz also disclosed more than $3.4m in crypto industry assets to the US Office of Government Ethics.
He added: “In the event that an actual or potential conflict of interest arises during my appointment, I will consult with an agency ethics official and take the measures necessary to resolve the conflict, such as recusal from the particular matter or divestiture of an asset.
“If I have a managed account or otherwise use the services of an investment professional during my appointment, I will ensure that the account manager or investment professional obtains my prior approval on a case-by-case basis for the purchase of any assets other than cash, cash equivalents, investment funds that qualify for the regulatory exemption for diversified mutual funds and unit investment trusts.”
When he assumes the CFTC chair role, Quintenz also promised to resign from his roles at non-profit organisation Remember Those In Prison and AH Capital Management – where he currently serves as head of policy for crypto.
Earlier this month, the CFTC dropped its legal challenge against Kalshi, filing a motion for voluntary dismissal with the US Court of Appeals for the DC Circuit in relation to election betting.
This brought an end to a legal dispute between the two parties, which dated back to November 2023.
President Trump’s son, Don Jr., will remain as a special adviser to Kalshi, with suggestion that the prediction markets model has favourable backing from the Trump administration as a result.
The post Kalshi board member promises to depart ahead of taking CFTC chairmanship first appeared on EGR Intel.
President Donald Trump has nominated Brian Quintenz to head up the US derivatives regulator, which some critics claimed had created a conflict of interest given his involvement with the prediction markets platform
The post Kalshi board member promises to depart ahead of taking CFTC chairmanship first appeared on EGR Intel.