U.S. Commodity Futures Trading Commission (CFTC) Commissioner Kristin Johnson, who announced her departure from the agency at the end of August 2025, delivered a farewell speech at the Brookings Institution. In her statement, she sharply criticized the decision to legalize prediction markets and expressed concerns about the loosening of regulations in innovative financial sectors, particularly cryptocurrencies.
This is reported by Business • Media
Concerns About Deregulation and Prediction Markets
Johnson emphasized that excessive deregulation, especially in the area of digital assets, poses risks to financial stability. She highlighted the need for a balance between fostering innovation and ensuring robust market protection. In her speech, she paid particular attention to prediction markets – platforms that allow contracts to be made on future events, including political ones.
“I am disappointed that during my time at the Commission, we have not been able to successfully advance a final rule regarding the introduction of contracts on political events. Market activity in recent months confirms my concerns and those of others regarding prediction markets.”
Her position was a response to the CFTC’s lost lawsuit against the prediction market Kalshi, which allowed this platform to officially offer political contracts. Against this backdrop, the operation of the Polymarket platform, which specializes in similar products, was also permitted in the U.S.
Regulatory Issues and Consumer Risks
Kristin Johnson pointed out that regulatory oversight remains insufficient, and protective mechanisms for market participants are lacking. She expressed concern about the possibility of credit products for retail clients emerging on prediction platforms, which could increase risks for consumers.
Johnson also noted a trend where companies obtain or lease licenses to operate in this field, but after receiving approval, they change their focus and attempt to self-certify new products or quickly resell the obtained licenses to other entities.
Furthermore, she emphasized that the Trump administration’s approach to deregulating the crypto industry should be measured. Johnson stressed that current policies set the economic foundations for future generations, urging adherence to principles of fairness and transparency in this sector.