Comment Text:
Dear Secretary Kirkpatrick,
I am writing to express my strong opposition to the expansion of prediction markets and event contracts under the CFTC’s jurisdiction. I urge the Commission to maintain a strict prohibition on these contracts for the following reasons:
Moral and Social Concerns: Turning sensitive real-world events—especially elections, sports, and judicial outcomes—into "event contracts" is a form of gambling that commodifies our democracy and civic institutions. It is fundamentally immoral to allow profit-seeking from outcomes that should be decided by merit and public participation, not by the highest bidder.
A Shift in Precedent: For years, these activities were correctly treated as illegal gambling and restricted to protect the public. The previous administration rightly took steps to stop the proliferation of these markets because they serve no legitimate economic hedging purpose. I am concerned as to why the Commission is considering a reversal of these protections now.
Public Interest: These markets are "contrary to the public interest" as defined by the Commodity Exchange Act. They invite market manipulation, create perverse incentives for bad actors to influence outcomes, and undermine the integrity of the events they track.
The CFTC should protect the financial system and the public by categorizing these contracts as prohibited "gaming" and refusing to preempt state gambling laws that have traditionally kept these activities in check.
Sincerely, Philip Carey
