Comment Text:
I am writing to urge the Commission to take strong regulatory action regarding event contract derivatives traded on prediction markets.
Allowing betting on government actions, military operations, terrorism and more is opening the door for inside trading. In addition, people could believe that government decisions are based on private financial interests. Or that could actually happen. This is unacceptable.
I respectfully submit that the Commission should explicitly prohibit event contracts related to military operations, acts of war, terrorism, political assassinations, and non-financial government policy decisions as contrary to the public interest. Additionally, any event contract where the outcome can be known in advance or controlled by a specific individual or small group is inherently susceptible to manipulation and should face a presumption against approval. This includes award show results, political speeches, corporate announcements, and any event where insiders have definitive advance knowledge.
The Commission has both the authority and responsibility under the Commodity Exchange Act to establish clear prohibitions on event contracts that are contrary to the public interest. I respectfully request that the Commission prohibit these dangerous categories of event contracts, strengthen surveillance and enforcement mechanisms to detect insider trading, and prioritize market integrity and public welfare over industry growth. The financialization of every aspect of human life, including war, death, and governance, should not proceed, and the Commission's action on this rulemaking will signal whether our regulatory framework prioritizes public welfare or permits the commodification of matters that should remain beyond the reach of financial speculation.
