Comment Text:
I call upon the Commodity Futures Trading Commission to take initiative and regulate prediction markets at once. This space has already shown to create perverse incentives, as well as having demonstrated poor respect for events of mass tragedy. The worst potential exists in government or business actions, though any point of 'prediction' where there exist insiders with definitive advance knowledge or hand in decisionmaking would be adverse. In particular, creating such incentives can encourage arbitrary decisions to the detriment of public interest, which should remain a priority. Even without the potential to incentivize negative outcomes, profitting from tragedies is plainly unethical, but that potential is inextricable. Allowing the ongoing misconduct to stand is unacceptable.
The Commission can address this, and it is its responsibility to do so. Expressly prohibit categories of event contract relating to military operation, foreign policy, other government actions, or similarly exploitable fields; strengthen enforcement against insider trading; and in all prioritize public welfare. Let us not invent new financial incentives to war, death, or governance; there is already too much of this. The Commission's action is critical now and for the future. I ask for this.
