Comment Text:
Dear Chairman and Commissioners,
My name is Angela-Jo Smith, and I'm a tax professional from Pennsylvania writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I'm not an expert in finance or regulation, but as an everyday citizen who's been learning tech skills to switch careers, I've become fascinated by how innovation can shape our future. I'm new to prediction markets, but I strongly support their potential, and I want to see the United States lead the way in this space.
I believe prediction markets offer unique value. They pull together information in a way that polls or news just can't match. I've read about how these markets have often been more accurate on things like election outcomes or economic trends, and that kind of insight could help regular people like me make better decisions, whether it's about finances or just understanding the world. Plus, opening these markets to everyday folks, not just big institutions, feels fair. It gives us a chance to participate and learn, not just watch from the sidelines.
What really drives my support, though, is the need for the US to stay competitive in financial innovation. I'm trying to move into tech myself, so I know how fast the world is changing. If we over-regulate or ban prediction markets, we're handing the lead to other countries. I've seen how offshore platforms already operate without oversight. Pushing this activity away from regulated US markets doesn't solve problems, it just makes them worse. We should be setting the standard here, not letting others do it for us. I think the CFTC can find a balance that encourages innovation while protecting consumers.
Looking at some of the questions in the ANPR, I want to touch on Question 7 under Public Interest. How do we balance innovation with consumer protection? I think the answer is clear rules, not outright bans. Protect against manipulation or insider trading with the tools you already have, but don't shut down a promising market. Also, Question 35 under Classification and Costs-Benefits asks about the impact on small entities. As someone hoping to work in tech, I worry heavy regulation could crush smaller players and startups before they even get started. Let's keep the barriers reasonable.
I know there are concerns about risks like insider trading or manipulation. I get that. But those are already illegal, right? The CFTC has power to go after bad actors without punishing everyone else. Banning prediction markets to stop a few cheaters would be like closing the stock market over insider trading. It doesn't make sense.
I urge you to support proportionate regulation for prediction markets. Encourage innovation, keep the US competitive, and protect consumers with targeted rules, not broad restrictions. Thank you for considering my perspective.
Sincerely,
Angela-Jo Smith
