Comment Text:
Dear Chairman and Commissioners,
My name is Kelvin Edwards, and I'm just a regular guy from Illinois writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've used prediction markets a few times, and I believe theyre a valuable tool for people like me. Im not a big investor or anything, just someone who sees this as a way to take calculated risks, much like I would with sports betting or options trading. Im asking you to support fair, proportionate regulation of these markets instead of over-restricting or banning them.
To me, prediction markets aren't gambling. Theyre about making informed guesses based on real-world events, and that takes research and thought, just like any other kind of investment. Classifying event contracts as "gaming" feels wrong because they serve a real purpose. Ive used them to hedge small risks, like betting on election outcomes that could impact my taxes or local business costs. Its not just me, either. I know small business owners who use these markets to protect against policy changes or economic shifts. Thats not a game; its a practical way to manage uncertainty. I think the CFTC should recognize this legitimate economic purpose, as discussed in Questions 15 to 22 about listed activities and defining gaming.
I also value the freedom to participate in legal, regulated markets. Prediction markets let everyday people like me have a stake in understanding whats going on in the world. If you limit access to just big institutions, all the useful information these markets provide stays locked up with them. That doesnt seem fair. Plus, the prices on these platforms often give better insights than polls or news pundits. Ive seen it myself, and I believe thats a benefit for everyone, not just traders. This ties into Questions 7 to 14 on public interest, where you ask about balancing innovation and consumer protection. I think regulated markets strike that balance by keeping things safe while still allowing participation.
I get that there are concerns about manipulation or insider trading, but those are already illegal. The CFTC has tools to go after bad actors without shutting down entire markets. Banning prediction markets to stop a few cheaters would punish regular folks like me who are just trying to make smart decisions. Instead, focus on enforcing the rules you already have. Im thinking of Questions 29 to 32 on inside information here. Lets not throw out a useful tool because of a few bad apples.
Im asking you to support sensible regulation that keeps prediction markets accessible to everyday people while addressing specific risks with targeted rules. Dont ban or over-restrict them. Thanks for taking the time to read my comment and consider my perspective.
Sincerely,
Kelvin Edwards
