Rep. Ritchie Torres to Commodity Futures Trading Commission: Create a Plan to Regulate Election Betting

Yesterday, Congressman Ritchie Torres (NY-15) wrote to Rostin Behnam, Chairman of the U.S. Commodity Futures Trading Commission. The letter reads as follows:

“In light of the Court ruling on September 6 overturning the CFTC’s prohibition on event contracts relating to the outcome of elections, I encourage the CFTC to focus its energies and resources on promoting the responsible innovation for which our financial markets are known.

“The CFTC has been considering these contracts for over two years, has benefited from multiple rounds of public comments in support of the market, and has presented its findings in court. I encourage the CFTC to embrace this growth within its regulated markets and to work collaboratively with regulated registrants to facilitate these contracts. Additionally, I encourage the CFTC to weigh the resources that further court challenges would consume, as well as the broader harm that further delays could have on election integrity and consumer protection. Delays could allow illegal and unregulated markets to continue gaining market share. These resources would be better allocated to working with regulated registrants to promote election integrity and protect consumers from the dangers posed by the widespread adoption of illegal and unregulated election markets.

“The United States District Court for the District of Columbia ruled that the CFTC is not permitted to block event contracts related to election outcomes. Even before this decision, the issue underwent thorough review by the Commission and the public, and the contracts received significant public support. The CFTC has a mandate to promote responsible innovation and ensure a fair judicial process. As you know, election markets have existed for years, unfortunately only on less secure and unregulated exchanges. In light of this, the CFTC should accept the ruling and look forward. I encourage you to focus on promoting responsible innovation, regulating exchanges, protecting consumers, and safeguarding the sanctity and integrity of elections from illegal and unregulated actors.

“With this in mind, I would ask that the Commission consider working toward a plan for regulating these markets, rather than preventing them from existing in regulated markets. I am more than happy to work with the CFTC to provide the resources needed and to address any concerns together.

“Thank you for your consideration. I trust this will receive full and fair consideration consistent with your guidelines.”

The PDF of the letter can be viewed here.