Comment Text:
My name is Adel Zorero,
I write to urge the Commission to take decisive regulatory action to address the growing risks posed by event contract derivatives traded on prediction markets. The unchecked expansion of these markets threatens market integrity, enables insider trading, and dangerously commodifies events that must remain beyond financial speculation—such as military operations, foreign policy decisions, terrorism, and political assassinations.
When individuals with nonpublic information can profit from such contracts, it not only distorts markets but also undermines public trust in government institutions. The perception that critical decisions may be influenced by private financial interests is deeply corrosive.
I strongly recommend that the Commission explicitly ban event contracts tied to:
Military operations, acts of war, and terrorism;
Political assassinations and non-financial government policy decisions;
Outcomes that can be known in advance or controlled by individuals or small groups, such as award show results, political speeches, and corporate announcements.
These contracts are inherently vulnerable to manipulation and should be presumptively disallowed.
Under the Commodity Exchange Act, the Commission has both the authority and the duty to prohibit event contracts that harm the public interest. I urge you to:
Ban these dangerous categories of event contracts;
Strengthen surveillance and enforcement to detect and prevent insider trading;
Prioritize market integrity and public welfare over industry expansion.
The financialization of war, death, and governance demands robust guardrails. The Commission’s action—or inaction—on this issue will define whether our regulatory framework protects the public or allows the commodification of matters that must remain beyond speculation. I respectfully request your immediate attention to this critical matter.
Sincerely yours,
Adel Zorero
