WASHINGTON, D.C.—Cantrell Dumas, Director of Derivatives Policy, issued the following statement in connection with the filing of a comment letter to the Commodities Futures Trading Commission (CFTC) on a proposed rule regarding event contracts.

“The CFTC’s proposed rule is common sense. Political event contracts should be classified as gaming and therefore do not serve the public interest. The facts, law, and policy fully support this and we have consistently championed this perspective. Political gaming and gambling undermine the integrity of our elections, foster market manipulation, and inappropriately cast the CFTC in the role of election regulator. The CFTC already has the critical role of regulating commodities and derivatives markets that matter to everyday Americans.

“Proponents of political betting might try to sell the idea that political event contracts offer some sort of economic insurance. But a thorough analysis showed that betting on politics is like betting on the weather—unpredictable and often disappointing. This randomness proves that political event contracts are unreliable and inappropriate for hedging purposes.

“The CFTC’s job is to keep our commodities markets ticking smoothly, ensuring that vitally important commodities are available to the American people when they want them, in the amounts they want, and at prices that reasonably reflect supply and demand. This impacts everything from cereal and coffee at breakfast, gas for cars and trucks, and sugar in almost everything. By focusing on commodities that impact everyday life, the CFTC can continue to serve and protect the American people.”

The comment letter is available here.

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