Comment Text:
Please take action to restore integrity to our financial markets and trust in our government officials. It is appalling that many people are now wondering whether government officials are making money from their inside knowledge of government plans. So I am writing to urge the Commission to take strong regulatory action regarding event contract derivatives traded on prediction markets. The current trajectory of prediction markets raises serious concerns about market integrity, insider trading, and the commodification of events that should remain outside the realm of financial speculation. Event contracts that allow wagering on military operations, foreign policy decisions, terrorism, assassination, or other government actions create unacceptable risks because individuals with nonpublic information about those decisions have both the opportunity and financial incentive to exploit that information. When citizens perceive that government decisions may be influenced by private financial interests, it erodes public trust.
