CFTC: InTrade prediction market is selling options, and requires our permission

“The CFTC is suing popular betting site Intrade. And now Intrade is telling its [U.S.] customers to start shutting down their accounts.” [Business Insider, Alex Tabarrok]

The CFTC says bets on future events must be exchange-traded as a way of assuring “market integrity,” but Bryan Caplan begs to differ:

The CFTC’s real complaint is that consumers eagerly bet on Intrade because the company exemplifies market integrity: “I trust Intrade with my money because of their reputation, not government regulation.” …The only people the CFTC is “protecting” are their own obsolete employees.

Brian Doherty notes that the CFTC’s press release is “strangely devoid of any mention of anyone being victimized or defrauded.” Followup: Tabarrok.

One Comment

  • They already won’t accept credit cards from US banks. I found this out because I tried to join so I could bet that ObamaCare would be upheld two days before the ruling.