Comment Text:
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.
I respectfully submit that the Commission should explicitly prohibit event contracts related to military operations, acts of war, terrorism, political assassinations, and non-financial government policy decisions as contrary to the public interest. Additionally, any event contract where the outcome can be known in advance or controlled by a specific individual or small group is inherently susceptible to manipulation and should face a presumption against approval. This includes award show results, political speeches, corporate announcements, and any event where insiders have definitive advance knowledge.
The Commission has both the authority and responsibility under the Commodity Exchange Act to establish clear prohibitions on event contracts that are contrary to the public interest. I respectfully request that the Commission prohibit these dangerous categories of event contracts, strengthen surveillance and enforcement mechanisms to detect insider trading, and prioritize market integrity and public welfare over industry growth. The financialization of every aspect of human life, including war, death, and governance, should not proceed without meaningful guardrails, and the Commission's action on this rulemaking will signal whether our regulatory framework prioritizes public welfare or permits the commodification of matters that should remain beyond the reach of financial speculation.
Please bear in mind also the danger any type of gambling (and you can any word on it you want, but that is what these contracts are) has for the personal and family lives of those with addictions but no knowledge of how these contracts work. The possibility of disaster is enormous. In addition, the idea of betting on people’s lives is so morally abhorrent that it should be disallowed immediately. For once, I would like to see a government agency work for the greater good rather than kowtow to those looking for another toy they can manipulate to enrich themselves to the detriment of the greater society. Ask yourselves: how are these types of contracts going to help or potentially harm the ordinary American, then please act accordingly.
