ProphetX has appointed Bruce Fekrat as CLO and Gabriel Wong as Chief Compliance and Risk Officer as the sports prediction market platform continues its effort to secure federal approval in the US.
The appointments add senior legal and compliance experience to the business while its applications remain under review by the Commodity Futures Trading Commission (CFTC).
ProphetX filed in November 2025 to register as both a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), which would allow it to operate as a federally regulated exchange and clearinghouse.
The move comes during a period of increased scrutiny for sports event contracts. Platforms in the sector have argued that contracts based on sports outcomes fall under commodities and derivatives law when offered through federally regulated venues.
Several state regulators and attorneys general have challenged that position, saying the products resemble sports betting and should be subject to state gambling laws.
ProphetX has also submitted comments to the CFTC calling for a federal framework for sports event contracts. The company has urged the regulator to use Section 4(c) of the Commodity Exchange Act to establish conditions for listing such products and to address conflicts with state gaming laws.
Fekrat joins with CFTC, private practice and exchange-side legal experience. He previously served as Chief Counsel to CFTC Commissioner Kristin Johnson and spent eight years in the CFTC’s Division of Market Oversight.
He later worked at WilmerHale and CME Group, where he served as Executive Director and Associate General Counsel across several product groups.
ProphetX CEO and Co-Founder, Dean Sisun, said: "As we bolster our presence in Washington and build toward becoming the first federally regulated sports-native exchange, these are exactly the right people to advance ProphetX's mission."
The appointments follow recent legal developments involving other prediction market operators.
A federal appellate ruling in April found that sports event contracts offered through CFTC-regulated exchanges can fall under the Commodity Exchange Act, while other state-level challenges remain active.
Earlier this month, Wisconsin DOJ filed lawsuits against Kalshi, Robinhood, Coinbase, Polymarket, Crypto.com and affiliated entities over sports-related event contracts, alleging the products amount to unlawful gambling activity in the state.
ProphetX’s CFTC applications seek approval for both trading and clearing functions, rather than relying on a separate clearing provider
