Add the olive oil to a large soup pot and place it over medium-high heat for two minutes. Add the onion and peppers. Cook for 5 minutes, stirring occasionally.
Add the seitan or tofu crumbles. Break it apart with a wooden spoon. Cook for 2-3 minutes stirring occasionally.
Add the chili powder, cumin, sugar, tomato paste, garlic powder, salt, pepper, and optional cayenne. Stir until well combined.
Add the broth and drained beans. Stir well.
Bring the liquid to a low boil. Then, reduce the heat (low to medium-low) to gently simmer the chili, uncovered, for 20-25 minutes, stirring occasionally.
Remove the pot from the heat. Let the chili rest for 5-10 minutes before serving.