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Comment for Proposed Rule 89 FR 48968

  • From: Nick Pappas

    Comment No: 73731
    Date: 5/23/2024

    Comment Text:

    The proposed rule is excessive. While there may be reasons to ban event contracts for small events where inside information plays a large role in predicting the outcome, there is no reason major events like the outcome of a Presidential election, or which party will control the House vs Senate should be banned.

    The public is very interested in these major events like Presidential elections, and if event contracts can give even a small bit of additional insight into their outcomes ahead of time - an outcome that affects the livelihoods and liberties of the whole population - that is more than enough of a reason to keep them legal. Hedging against outcomes that would be bad for you is of course another.

    The CFTC should consider a more measured, gradual approach to regulating this area, rather than ending an industry wholesale for reasons that haven't been articulated well. Why not start by allowing event markets for specific large questions that no one can conceivably have inside info about?

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