Comment Text:
Chairman Michael S. Selig
Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Re: Prediction Markets, RIN 3038-AF65
Dear Chair:
Better Markets, Public Citizen, and 11 other organizations filed a comment letter in response to its advanced notice of proposing rulemaking regarding event contracts.
As an increasing number of people use so-called “event contracts” to bet on prediction markets, the need for rules that protect the public has never been greater. The CFTC should prohibit event contracts that involve elections or geopolitical events. Event contracts on such events incentivize election interference, could improperly influence governmental actions, and have the potential to undermine the integrity of our democracy.
Event contracts on political elections are nothing more than gambling.
There is no reason the CFTC should permit such event contracts. The CFTC is not an election regulator. It already has an incredibly important mission: regulating the $500 trillion derivatives markets. This has nothing to do with wagering on elections. The CFTC should not attempt to regulate in an area beyond its mandate, which will impair its ability to fulfill its critical role.
It is important that elections as well as official actions taken by a democratic government not be about personal financial profit. Elections are the pillar of democracy. The more the public loses confidence in the good character of free and fair elections, the more our democracy is at risk. And governmental decisions and official actions by a democratically-elected government should be made in the public interest, not the selfish interest of winning a bet. The CFTC should end the now out-of-control gambling on elections and geopolitical events on the predictive markets.
By allowing bets on elections and geopolitical events, prediction market platforms encourage government corruption and the misuse of inside information. Our government is simply too sacred to risk the misuse of inside information and the potential for market manipulation just to facilitate gambling. The CFTC must act, and it must act now.
Full comment letter:
https://bettermarkets.org/wp-content/uploads/2026/04/Prediction-Markets-Comment-Letter.pdf
Yours sincerely,
Robert E. Rutkowski
