Former Senator Lincoln Now Lobbies for Kalshi Prediction Market
Former US Senator Blanche Lincoln, who previously raised concerns about prediction markets, is now lobbying for Kalshi, a platform that hosts such markets. Her firm has received significant funding from Kalshi.
Former US Senator Blanche Lincoln has taken a new role as a lobbyist for Kalshi, a prediction market platform. This move comes after Lincoln previously expressed concerns about the potential for prediction markets to be used for gambling. As a senator, she played a role in the legislation that now oversees these markets.
In 2010, Lincoln warned during Senate proceedings on the Dodd-Frank Act that prediction markets could be used to circumvent gambling laws by offering "event contracts" tied to sporting events. She stated at the time that such contracts would lack commercial purpose and would primarily be used for wagering.
Lincoln's firm has received $480,000 from Kalshi since the beginning of 2024. The lobbying efforts are focused on persuading the Commodity Futures Trading Commission (CFTC) to permit sports-related gambling on Kalshi's prediction markets, indicating a shift in her stance on the regulation of these platforms.
The developments raise questions about the evolving regulatory landscape for prediction markets and the influence of former lawmakers on policy decisions within the financial technology sector.