Comment Text:
Dear Chairman and Commissioners,
My name is Andrew McCloskey, and Im a construction worker from Massachusetts. Im writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. Im new to prediction markets, but I strongly support their existence under fair and reasonable regulation. Ive seen how hard it is to get reliable information on things like elections or public events, and I believe these markets can help with that while offering real economic benefits.
In construction, we deal with uncertainty all the time, whether its weather events affecting project timelines or policy changes impacting costs. Prediction markets could help me and others in my field hedge against risks, like betting on outcomes that might affect material prices or regulations. More than that, Ive read how these markets often predict events more accurately than polls or pundits. That kind of information isnt just helpful for traders; its valuable for everyone, from regular folks like me to businesses and even policymakers trying to make informed decisions. I also think its important that regular people have the freedom to participate in legal, regulated markets. Shutting out the little guy while big institutions get to play isnt fair and keeps the best info locked away.
Im all for consumer protection, but I believe the answer is regulation, not bans. Platforms like Kalshi, which operate under CFTC oversight, are much safer than unregulated offshore sites. If you over-restrict or ban these markets, youll just push activity to those shady platforms where theres no accountability. The CFTC already has strong tools to tackle manipulation and insider trading in other markets; use those here instead of broad prohibitions. And lets be clear, event contracts arent gambling. They serve real purposes, like hedging and price discovery, just like trading stocks or commodities. Calling this gaming would be a mistake. On a side note, Id love to see fewer rules overall and more flexibility, like allowing combo bets or parlays with player props and moneylines together.
Im also concerned about U.S. competitiveness. We should be leading in financial innovation, not letting other countries take the wheel. Ive seen academic studies showing how prediction markets improve information transparency, and informed trading actually makes prices more accurate, helping everyone. Addressing specific risks with targeted rules makes more sense than categorical bans. Id urge you to look at questions 7-14 on public interest and 15-22 on defining legitimate markets in the ANPR. Lets focus on balancing innovation with protection, not shutting things down.
Please support proportionate regulation of prediction markets. Dont ban or over-restrict them. Keep them accessible, safe, and innovative right here in the U.S.
Sincerely,
Andrew McCloskey
