Sports Betting by Marit & Toomas Hinnosaar is licensed under CC BY 2.0
ATR is proud to join a coalition letter to end the Commodity Futures Trading Commission’s red tape on prediction markets. ATR supports permissionless innovation in prediction markets moving forward.
The Biden administration CFTC pursued weaponized regulation against prediction market venues, even attempting to ban an election market exchange that had been approved by the CFTC under the Obama administration back in 2014. Fortunately, this and other attempts to ban prediction markets were thwarted by federal courts that correctly found the CFTC had exceeded the law.
ATR signed this coalition letter in support of ending the Biden-era CFTC overregulation. The signatories believe the CFTC must affirm that prediction markets for elections and other events are acceptable as futures trading venues.
We note that another similarity to traditional futures exchanges is prediction markets’ ability to enable individuals and businesses to hedge risks. Election results impact businesses large and small, and prediction markets allow small firms to hedge election results just as large corporations do with expensive and complex derivatives.
This coalition believes that these prediction markets have the potential disseminate practical information to and that the past overreach of the CFTC must come to an end.
Read the full letter here.
