Better Markets Applauds CFTC’s Proposed Ban on Election Gambling To Prevent Election Interference and Protect … – Better Markets

WASHINGTON, D.C. Cantrell Dumas, Director of Derivatives Policy, issued the following statement in connection with the Commodities Futures Trading Commissions (CFTC) open meeting to consider a proposed rule regarding event contracts.

We applaud the CFTC for taking steps today to clarify and strengthen the rules governing event contracts and specifically election gambling contracts. Gambling on elections is unacceptable for many reasons, including that it will likely incentivize election interference, further erode Americans trust in elections, and threatens investors with an inevitable onslaught of predatory platforms designed to lure them into a manipulated market. Worse, the CFTC already has a vital public mission that is important to all Americans. It simply does not have the budget or expertise to be regulating and policing elections, which should be done by others like the Federal Election Commission (FEC) and the states. Finally, such contracts are clearly against the public interest and a new rule to address this is appropriate.

We will review the proposal in detail to make sure that it adequately deals with these issues and threats. If sufficiently strong and clear, todays proposed rulemaking will not only safeguard the core values of our democracy but also act as a barrier against the gamification of our democratic outcomes, ensuring that speculative betting doesnt tarnish the integrity of our electoral processes or the CFTC. The CFTC was right to reject Kalshis proposal to allow wagering on the partisan control of Congress, and if adopted, this rule will help clarify the law and reiterate that they are impermissible. By taking this stand, the CFTC reaffirms that derivatives markets should fulfill their intended rolesupporting economic activities and providing risk management solutions related to those activitiesnot serving as platforms for excessive speculative gambling on political outcomes.

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with alliesincluding many in financeto promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans jobs, savings, retirements and more. To learn more, visit http://www.bettermarkets.org.

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Better Markets Applauds CFTC's Proposed Ban on Election Gambling To Prevent Election Interference and Protect ... - Better Markets