Comment Text:
Dear Chairman and Commissioners,
My name is Jean Phaeton, and Im a small business owner from California. I run a modest operation here, and like a lot of folks in my position, Im always looking for ways to stay informed and manage risks that could affect my livelihood. Im writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I strongly support the idea of well-regulated prediction markets, and I want to share why they matter to someone like me.
Ive used prediction markets a few times, mostly to get a sense of where things might be headed on issues that impact my business, like economic policies or election outcomes. What Ive found is that these markets often give clearer, more reliable signals than the news or opinion polls. Theyre not just a game or a gamble; theyre a tool for understanding the world. As a small business owner, I dont have a team of analysts or insiders to lean on. Prediction markets level the playing field a bit, letting regular people like me access information that would otherwise be out of reach.
What I care about most is the freedom to participate in legal, regulated markets. Ive seen platforms like Kalshi, which operate under CFTC oversight, and I feel much safer using those than turning to some unregulated offshore site where theres no accountability. If the CFTC cracks down too hard or bans these markets outright, I worry that people will just move to shadier options. That doesnt protect anyone; it just pushes the activity into riskier corners of the internet. Regulation should keep us safe, not shut us out.
I noticed in your questions, particularly in Topic B on public interest (Questions 7-14), that youre weighing innovation against consumer protection. I think you can do both. Regulated markets encourage innovation while setting clear rules to prevent abuse. And in Topic D on procedural aspects (Questions 23-28), Id urge you to avoid blanket bans or overly broad restrictions. Look at each market or contract type individually, and focus on fixing specific problems rather than punishing everyone.
I get that there are concerns about manipulation or insider trading. Those are real issues, but the CFTC already has tools to tackle them. Use those powers to go after bad actors instead of limiting access for honest participants. Prediction markets are valuable to people like me, and I believe they can benefit society as a whole by improving how we forecast and manage uncertainty. Please support proportionate regulation that lets these markets thrive under clear, fair rules.
Thank you for considering my input.
Sincerely,
Jean Phaeton
