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Odaily News CME Group Chairman Terry Duffy, the operator of the world's largest futures exchange, and Luana Lopes Lara, co-founder of prediction market platform Kalshi, clashed verbally during a U.S. Commodity Futures Trading Commission (CFTC) roundtable in Washington. Duffy questioned whether prediction markets face the same regulatory scrutiny as established exchanges and noted that certain contracts could be subject to manipulation.Terry Duffy stated that CME Group is not a "barker at the circus" and mocked some contracts offered by Kalshi, including the Nathan's Hot Dog Eating Contest contract. Luana Lopes Lara responded that traditional markets and exchanges carry risks as well and that regulators are responsible for identifying and addressing such issues. DraftKings CEO Jason Robins subsequently called on both sides to stop attacking each other's business models.The dispute comes amid ongoing disagreements between federal regulators and states over the regulatory authority of prediction markets, with the central question being whether contracts involving sports, elections, and other real-world events are federally regulated derivatives or gambling products subject to state law. Last week, a Washington state judge ordered Kalshi to stop offering certain contracts. Two days ago, the CFTC instructed Kalshi to continue trading, pushing back against New York state's efforts to block its contracts. (Decrypt)
prediction market platform Kalshi is internally deploying an AI agent system named "Harrison" to optimize its prediction market contract designs and stress-test betting outcomes, aiming to reduce the risk of errors and ambiguities in large-scale trading. According to co-founder Luana Lopes Lara, the AI tool is being used to handle critical internal processes for the platform's millions of daily transactions, focusing on resolving complexities in the wording and rules of event contracts covering areas such as political elections, sports events, and award outcomes.Kalshi stated that "Harrison" is helping the team identify potential vulnerabilities in contract designs in advance, reducing disputes caused by unclear definitions, thereby enhancing market operational stability and execution efficiency. As the scale of prediction market trading expands, this AI system is seen as a significant upgrade to the infrastructure layer, contributing to improved contract standardization and automated governance capabilities. (Bloomberg)