Comment Text:
MindCast AI LLC submits this comment on the Notice of Proposed Rulemaking, Prediction Markets; Public Interest Determinations, RIN 3038-AF65. MindCast AI previously filed in this docket on April 17, 2026, at the ANPRM stage, requesting conversion of the Advance Notice into a Rule 40.11 rulemaking; the Commission adopted that request, and the present comment builds on the prior filing.
MindCast AI supports the conversion, the recreation-or-entertainment element of the proposed gaming definition, and the relocation of the economic-function inquiry to the public interest factors at proposed § 40.11(a)(5)(i). Five gaps remain, each curable within the structure the Commission built.
The attached comment requests that the Commission:
(1) adopt the alternative structural definition of "gaming" the preamble floats — activity created by its rules in which all participants whose conduct determines the outcome operate within the activity itself — which resolves the game-show, pageant, and talent-competition questions without case-by-case purpose characterization;
(2) amend proposed § 40.11(e)(1)(ii) to require a brief public concluding notice when a review ends without an order, converting silence from a record gap into a record entry;
(3) require a standardized pendency notice on the trading interface of any contract under active review, addressing the close-out reliance harm the preamble acknowledges;
(4) add an expedited determination track or settlement-tolling provision for contracts that settle within the review timeline, or alternatively state expressly that consolidated category review under proposed § 40.11(c)(4) governs recurring short-duration contract types; and
(5) state expressly whether the determination-contingent structure of proposed § 40.11(a)(1) reflects the Commission's interpretation of the existing rule or operates prospectively only — the question on which pending private litigation under 7 U.S.C. § 25(b) now turns.
The full analysis appears in the attached comment letter.
