Comment Text:
Dear Chairman and Commissioners,
My name is Austin Olejniczak, and I'm a trader and investor based in Illinois. I'm writing to express my strong support for the proportionate regulation of prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, published in 91 FR 12516. I've been actively using prediction markets for hedging and risk management, and I believe they serve a vital purpose for individuals like me and for the broader economy.
As a trader, I rely on prediction markets to manage risks tied to economic and political events that impact my investments. For instance, I've used these markets to hedge against potential policy changes after elections that could affect my portfolio. The information and pricing signals I get from these platforms are unique; no poll or pundit has been as consistently accurate in my experience. This isn't gambling, it's a tool for making informed decisions based on research and judgment, much like trading stocks or commodities. Beyond my personal use, I see these markets as a public good. They aggregate information in a way that benefits everyone, not just traders, by providing clearer insights into future events.
What concerns me most is the risk of the United States falling behind in financial innovation. If we over-regulate or restrict prediction markets, were handing the advantage to other countries that are more willing to embrace these tools. I've seen firsthand how regulated platforms like those registered with the CFTC offer a safer, more transparent environment than offshore alternatives. Pushing activity to unregulated venues by being too restrictive would be a mistake. We should be leading the way, setting the standard for how prediction markets operate globally, not ceding that ground to others.
Id like to address a couple of specific questions from your ANPR. On Question 7, regarding balancing innovation and consumer protection, I believe the CFTC can achieve both by focusing on targeted rules against manipulation and insider trading, which are already illegal under existing laws, rather than broad bans. And on Question 14, about the role of prediction markets in price discovery, I can say from experience that theyve helped me make better financial decisions by providing data I cant get elsewhere.
Im not blind to the risks. Insider trading or manipulation could be issues, but the answer isnt shutting down these markets. Its enforcing the laws we already have. The CFTC has the tools to tackle bad actors without punishing the rest of us who use these markets responsibly.
I urge you to support a regulatory framework that allows prediction markets to thrive under clear, fair rules. Dont let overly restrictive policies stifle this innovation or push it overseas. Lets keep the U.S. at the forefront of financial technology.
Thank you for considering my input.
Sincerely,
Austin Olejniczak
