Comment Text:
Dear Chairman and Commissioners,
I'm a finance professional from Pennsylvania, working as an auditor. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I want to express my support for well-regulated prediction markets under the CFTC's oversight, and I hope my perspective as someone in finance can add to this discussion.
As an auditor, I'm very intentional about maintaining independence and avoiding any activity that could compromise my professional standards. I've used prediction markets a few times, but always with caution and very isolated to ensure I'm not crossing any ethical lines.
I strongly support regulation by the CFTC to ensure consumer protection. Without proper oversight, people might abuse the system with a lack accountability. Regulated markets, like those on a CFTC-registered designated contract market, provide transparency and safeguards that protect participants. I'm particularly concerned about the potential for insider trading, and I believe the CFTC should enforce strict rules to prevent it. The laws already in place banning federal employees and others from trading on nonpublic information are a good start, but the CFTC needs to actively monitor and enforce them in prediction markets specifically.
Prediction markets are innovative tools for forecasting and shouldn't be stifled, but they need guardrails to protect everyday users, and there has to be a clear line against abusing privileged information, with real consequences for violations.
I do think prediction markets are gambling. Even if they require research and judgment, much like any other financial instruments. My ask is simple: please support proportionate regulation of prediction markets under the CFTC's authority. Focus on targeted rules to address risks like manipulation and insider trading, rather than broad prohibitions.
Thank you for considering my input.
