Megan McCarty Carino

It's been regulated as a futures market by the Federal Commodity Futures Trading Commission.

since just like 2024.

And basically, you know, Kalshi got a license and the CFTC, which is the Commodity Futures Trading Commission, said, yes, you know, we do have the jurisdiction over you.

This is likely to go to the Supreme Court at some point.

But the rationale for the current regime is that unlike a gambling market, there's no house.

These platforms say that they are exchanges connecting

Two parties to make a yes or no contract on whether a specific event will happen in the future.

Now they're kind of been pushing into sports a lot.

It actually makes up kind of the bulk of their business.

I know we've been giving a lot of attention to the geopolitical side, but most of what happens on these platforms are sports contracts.

And I think that sort of very direct comparison with sports gambling is what has a lot of people saying no.

How is this different from sports betting?

But for the moment, at least, these are regulated like commodities futures.

One of the big differences between the stock market and the commodities markets is that stocks, firms, they have shareholders, right?

And so one of the sort of main legal reasons that we would be worried about insider trading is that if you are an insider at a company and you have insider information and you trade on it, you could really be, you know, messing with

the company's shareholders whom you have a fiduciary duty to.

And so that has been kind of one of the main legal and I think ethical constructs behind why we worry about insider trading.

There are no shareholders with commodities.

You know, there's no corn shareholders.

There's no oil shareholders.