Kalshi Lawyer Josh Sterling Considered for CFTC Chair Role

A fresh round of speculation surrounds the Commodity Futures Trading Commission (CFTC) as the Trump Administration weighs who will take the top job at the regulator. The agency, which oversees futures, swaps, and increasingly digital assets, is heading into a period of change after years of heated debates over crypto and prediction markets.

Good to Know

• Josh Sterling, a lawyer for Kalshi, is being vetted as a possible chair candidate.
• Commissioner Kristin Johnson stepped down after three years with pointed remarks on prediction markets.
• The CFTC now operates with only three commissioners as leadership talks continue.

Leadership changes at financial regulators rarely happen quietly, and the CFTC is no exception. Rostin Behnam, who has guided the agency since 2021, stepped down in January and will formally depart in February. His tenure included tough debates on how far the CFTC should go in regulating crypto tokens and online trading platforms. The decision on who follows him will shape policy at a time when financial markets are pulling regulators into new territory.

At the moment, the White House is reviewing potential nominees. According to Semafor, Josh Sterling from Kalshi is being considered after Brian Quintenz’s earlier nomination stalled. Kalshi, already a familiar name in the prediction market sector, would find itself closely connected to the future of the agency if Sterling takes the helm.

Meanwhile, internal shifts are adding to the uncertainty. Commissioner Kristin Johnson wrapped up her three-year term earlier this month. She used her exit to deliver a clear warning about the growing influence of prediction markets and the risks they bring. Johnson said regulators should avoid rushing decisions in this space and stressed the challenge of protecting consumers without stifling innovation.

Her message carried a sharp edge: “The explosive expansion of prediction markets” requires a more cautious approach. She also raised red flags about contracts tied to elections and the possibility of abuse, which she believes could blur lines between regulated financial products and speculative entertainment.

With Johnson gone, the CFTC has just three commissioners left. That slimmer bench makes the upcoming leadership decision even more important. Whoever takes the chair will inherit thorny issues involving crypto oversight, derivatives trading rules, and the future of platforms like Kalshi that test regulatory boundaries.

The broader political backdrop also matters. The Trump Administration has made clear that financial regulation will stay on its radar, especially in areas that intersect with digital finance. The eventual nominee for chair will not only face Senate confirmation but also pressure to deliver clarity on how much control the CFTC should exercise over prediction markets and digital assets.