Comment Text:
Dear Chairman and Commissioners,
My name is Christine Ladyzinski, and I'm a policy professional based in New York. I've spent much of my career working on government and public policy issues, so I understand the importance of balancing innovation with oversight. I'm writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I support well-regulated prediction markets and urge the CFTC to adopt a proportionate approach that fosters their benefits while addressing real risks.
I've used prediction markets a few times myself, and I can attest to their value. They provide unique insights into elections and public events that you just can't get from polls or pundits. For someone like me, who relies on accurate forecasting to inform policy analysis, these markets are a powerful tool for understanding probabilities and trends. They also contribute to price discovery, which benefits not just traders but anyone making decisions based on public events. I believe this kind of information aggregation is critical for better public decision-making, and prediction markets democratize access to it.
What concerns me most is the risk of over-restriction or outright bans. Banning or overly limiting these markets won't eliminate demand; it will just push activity to unregulated offshore platforms where theres no consumer protection at all. Ive seen how regulated markets like Kalshi operate under CFTC oversight with clear rules and safeguards. Thats far safer than driving users to sketchy, unregulated alternatives. The CFTC should focus on strengthening domestic, regulated markets instead of ceding this space to foreign entities. The US has a chance to lead in financial innovation here, and I dont want to see us fall behind other countries that are more open to these tools.
I also want to address some of the specific questions in the ANPR, particularly those in Topic Area B on Public Interest (Questions 7-14). I believe prediction markets serve the public interest by improving forecasting and offering a legal, regulated way for individuals like me to participate in understanding and hedging against uncertainty. And on Topic Area D (Questions 23-28), Id urge the CFTC to avoid broad categorical bans and instead use targeted, case-by-case analysis to address specific risks like manipulation or insider trading. Existing laws already cover those issues, and the CFTC has the tools to enforce them without punishing everyone.
I'm all for consumer protection, but it has to be smart and focused. Proportionate regulation that tackles real problems is the way to go, not heavy-handed restrictions that kill innovation. Please support a framework that allows prediction markets to thrive under clear, fair rules while keeping the US at the forefront of financial technology.
Thank you for considering my input.
Sincerely,
Christine Ladyzinski
