The Southwest Public Policy Institute (SPPI) is proud to announce that it has joined the Competitive Enterprise Institute (CEI) and more than a dozen other free-market and conservative organizations in urging the Commodity Futures Trading Commission (CFTC) to cut unnecessary red tape on prediction markets and embrace a policy of permissionless innovation.
In a coalition letter sent on June 4, 2025, to CFTC Acting Chair Caroline D. Pham and Commissioner Kristin N. Johnson, SPPI and its partners emphasized the critical role prediction markets play in empowering Americans with practical information on political, cultural, and economic trends. The letter cited the strong performance of prediction markets in forecasting the 2024 presidential election compared to legacy media polls, underscoring their value as a reliable forecasting tool.
The coalition called for the CFTC to reverse the Biden administration’s “weaponized regulation” that had threatened to ban election markets and to instead adopt a forward-looking approach. Specifically, the letter requests that the CFTC:
- Affirm that event contracts offered on prediction markets are permissible under the federal Commodities Exchange Act and are subject to the exclusive jurisdiction of the CFTC.
- Commit to policing fraud and bad actors while not restricting the subject matter of the event contracts offered by these venues.
The letter also highlighted how prediction markets, like traditional futures exchanges, allow businesses and individuals to hedge risks and manage exposure to real-world events. From elections to sports outcomes, these markets help participants manage uncertainty and plan more effectively for the future.
Patrick M. Brenner, President of the Southwest Public Policy Institute, proudly cosigned the letter on behalf of SPPI. “Prediction markets are an important tool for transparency, accountability, and risk management,” Brenner said. “We urge the CFTC to support this innovative sector and reject unnecessary regulatory burdens.”
This call to action was covered by Politico’s Morning Money, which reported that the coalition of free-market groups had urged the CFTC not to restrict prediction market products and to adopt a policy that encourages innovation in the financial services sector.
John Berlau, CEI’s Director of Finance Policy and a signatory of the letter, emphasized that scholars across ideological lines recognize the importance of prediction markets in providing real-time information to businesses, policymakers, and citizens.
SPPI remains committed to advocating for policies that promote individual choice, innovation, and economic opportunity in the American Southwest and beyond.
The signatories include:
John Berlau, Competitive Enterprise Institute
Grover Norquist, Americans for Tax Reform
James Erwin, Shareholder Advocacy Forum
James L. Martin, 60 Plus Association
Saulius “Saul” Anuzis, American Association of Senior Citizens
Phil Kerpen, American Commitment
Robert Romano, Americans for Limited Government
Brian Garst, Center for Freedom and Prosperity
Daniel Mitchell, Center for Freedom and Prosperity
Jeffrey Mazzella, Center for Individual Freedom
Ryan Ellis, Center for a Free Economy
Ashley Baker, The Committee for Justice
George Landrith, Frontiers of Freedom
Andrew Langer, Institute for Liberty
Charles Sauer, Market Institute
Patrick M. Brenner, Southwest Public Policy Institute