Try the political quiz
 @ISIDEWITHNewsUnited StatesSports Bettingfinancial regulationCFTCderivatives tradingpolitical betting•••5mos ago

CFTC Moves to Ban Derivatives Betting on Elections and Sporting Events

In a significant regulatory shift, the U.S. Commodity Futures Trading Commission (CFTC) has proposed a rule to ban derivatives contracts that allow betting on the outcomes of political elections, sporting events, and other real-world occurrences. This move, announced on Friday, marks a concerted effort by the CFTC to delineate the line between financial trading and gambling, aiming to safeguard the integrity of the financial markets. The proposed ban targets so-called 'event contracts,' which have gained popularity as speculative instruments on various platforms.

The CFTC's proposal comes amid growing concerns over the potential for these contracts to undermine the traditional financial and commodities markets, blurring the lines between regulated financial activities and gambling. By taking a firm stance against the listing and clearing of these event contracts, the CFTC seeks to prevent the financialization of political and entertainment outcomes, which could pose risks to market stability and investor protection.

The agency's decision to advance this rule reflects a broader regulatory scrutiny of speculative trading practices that may exploit the outcomes of non-financial events. CFTC Chair Rostin Behnam emphasized the importance of maintaining clear boundaries in the financial markets, stating that the proposed ban is crucial for protecting the integrity of the derivatives markets and ensuring they function efficiently and transparently.

The proposal has sparked a debate among traders, betting platforms, and market analysts, with some arguing that it could stifle innovation and limit the diversity of financial products available to investors. Others, however, applaud the CFTC's move as a necessary step to prevent the commodification of political and social events, which could lead to speculative bubbles and market manipulation.

As the CFTC prepares for a final vote on the proposed rule, the financial community is closely watching the outcome of this regulatory intervention. If implemented, the ban could reshape the landscape of derivatives trading in the United States, reinforcing the distinction between legitimate financial instruments and speculative bets on non-financial events.

5 Replies

 @YearlyDoughnutLibertarianfrom California commented…5mos5MO

Seems like just another way for the government to stifle market freedom under the guise of protection.

 @SolemnVenisonProgressive from Kansas commented…5mos5MO

I'm really glad to see the CFTC stepping in to put a stop to derivatives betting on elections and sporting events. It's about time we draw a clear line between responsible investing and outright gambling, especially when it comes to something as serious as our political elections. This move is a step in the right direction to ensure our financial markets remain a place for legitimate investment, not speculative betting on the outcomes of real-world events.

 @ISIDEWITHasked…5mos5MO

How would you feel if you could no longer bet on election outcomes or your favorite sports games through financial markets?

 @ISIDEWITHasked…5mos5MO

Should financial markets be involved in political and entertainment outcomes, or is this crossing a line into gambling?

 @ISIDEWITHasked…5mos5MO

Do you think banning derivatives betting on elections and sporting events protects the financial market or limits personal freedom?

More conversations

Join in on more popular conversations.

 @ISIDEWITH submitted…4wks4W

Haitian families in Ohio under attack as racist claims spread

The morning after former President Donald Trump repeated racist claims about Haitians in Springfield, Ohio, some Haitian families are keeping their children home from school for their safety, according to an area activist. Those who allowed their children did so, but with heavy hearts. “She [my niece] was scared, but I told her to go, that God would protect,” said one Haitian resident, who asked that she not be identified publicly for fear of reprisal."“We’re all victims this morning,” said the woman, who moved to Springfield six years ago. “They’re attacking us in every way.”Aside from the anxiety caused by Tuesday night’s debate, the woman also said her cars have been vandalized twice in the middle of the night. She woke up one morning to broken windows and another to acid thrown on the vehicle. She’s added cameras to her driveway and tried to report the incidents to the police to no avail.“I’m going to have to move because this area is no longer good for me,” she said. “I can’t even leave my house to go to Walmart. I’m anxious and scared.”The families’ accounts, shared with The Haitian Times under conditions of confidentiality, are the latest tales of intimidation, bullying and assaults against Haitians as anti-Haitian sentiment has gone viral. Springfield police referred calls about reports of crimes against immigrants to an employee who has yet to return a message from The Haitian Times as of Wednesday afternoon.

▲  2013 replies

 @ISIDEWITH submitted…14hrs14H

Iran Warns to U.S. Allies Don’t Help Israel, or You’re Next

Tehran is threatening in secret diplomatic backchannels to target the oil-rich Arab Gulf states and other American allies in the Middle East if their territories or airspace are used for an attack on Iran, said Arab officials.Israel has threatened Tehran with a severe reprisal after Iran fired about 180 ballistic missiles at Israel earlier this month, with some Israeli officials and commentators pushing for damaging strikes on Tehran’s nuclear facilities or oil infrastructure. In that event, Iran has warned it would respond with devastating hits on Israel’s civilian infrastructure, and would retaliate against any Arab state that facilitated the attack, the officials said.The Arab officials said the countries that Iran has threatened include Jordan, the United Arab Emirates, Saudi Arabia and Qatar, all of which host U.S. troops. These states have told the Biden administration that they don’t want their military infrastructure or airspace to be used by the U.S. or Israel for any offensive operations against Iran, the officials said. While the Iranian threats are vague, they have raised concerns in energy-rich Persian Gulf states that their oil facilities—long viewed as protected by an American security umbrella—could be hit, the Arab officials said. U.S. military installations and forces in the region could also be at risk in a region with one of the highest concentrations of American troops in the world, they added.While the Iranian threats are vague, they have raised concerns in energy-rich Persian Gulf states that their oil facilities—long viewed as protected by an American security umbrella—could be hit, the Arab officials said. U.S. military installations and forces in the region could also be at risk in a region with one of the highest concentrations of American troops in the world, they added.

▲  4716 replies1 disagree