TLDR The CFTC asked for public input on prediction market rules and most comments so far have been critical U.S. Senators, lawyers, and academics argue prediction markets resemble gambling more than financial tools Retail comments surged from 19 to over 750 after early April, with strong anti-gambling sentiment Many submissions warn about manipulation, insider trading, and risks tied to political or military contracts A large portion of retail comments used identical wording, linked to advocacy group More Perfect Union
The Commodity Futures Trading Commission is getting an earful from the public over its proposed prediction market rules. And most of what people are saying is not positive.
The CFTC opened a comment period earlier this year as part of an Advance Notice of Proposed Rulemaking. The goal was to gather feedback on how event contracts should be regulated under the Commodity Exchange Act.
What came back was a flood of opposition from lawmakers, legal experts, academics, and everyday citizens.
Lawmakers and Institutions Push Back
U.S. Senators Jack Reed and John Hickenlooper were among the first to weigh in. Their letter raised concerns about manipulation and threats to public trust, especially for contracts tied to political events.
Law firms and attorneys also filed comments questioning whether event contracts belong under derivatives regulation at all. Several argued that these products look more like gambling aimed at retail users.
The National Thoroughbred Racing Association said event contracts tied to horse racing would violate the Interstate Horseracing Act. The group urged the CFTC to use its authority to block them.
NCAA President Charlie Baker followed up on an earlier letter asking the CFTC to suspend contracts linked to college sports. He pointed to integrity risks and the potential for insider trading.
Seton Hall law professor Ilya Beylin submitted academic commentary arguing