Comment Text:
Dear Chairman and Commissioners,
My name is Deandre Wood, and I'm just a regular citizen from Virginia writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I'm pretty new to prediction markets, but I've been reading up on them, and I strongly support having well-regulated markets for event contracts in the United States.
I think prediction markets are valuable for a few reasons. First, they can help everyday people like me manage financial risks. For example, if an election or a new policy could impact my job or the cost of things I rely on, having a way to hedge against that uncertainty would be a real help. It's not gambling, it's just planning ahead with the best tools available. Second, these markets seem to provide better information than a lot of polls or news outlets. I've seen articles about how prediction markets often predict outcomes more accurately, and I think that kind of price discovery could help everyone make better decisions, whether it's individuals, businesses, or even policymakers.
I'm also concerned about the US staying competitive. We should be leading the way in financial innovation, not letting other countries take the lead. If we over-restrict or ban prediction markets here, people will just turn to offshore platforms that aren't regulated at all. I've read about platforms like Kalshi that operate under CFTC oversight, and that seems a lot safer than pushing activity to unregulated sites where there's no protection for users. Why would we want to drive innovation and economic activity overseas when we can keep it here with proper rules?
I noticed a few questions in the ANPR that relate to my thoughts. On Question 7 under Public Interest, about balancing innovation and consumer protection, I believe we can do both by regulating markets like these without shutting them down. And on Question 33 under Classification & Costs-Benefits, I think the CFTC should consider how over-regulation might hurt small players or push them to riskier offshore options. I've also come across academic research, like studies by economists showing how prediction markets improve transparency and data for decision-making, and I think that's worth supporting too.
I know there are concerns about manipulation or insider trading, and those are valid. But the CFTC already has tools to tackle fraud and abuse in other markets, and I believe those can be applied here without banning entire categories of contracts. Let's not punish everyone for the actions of a few bad actors.
I'm asking you to support proportionate regulation of prediction markets. Please don't ban or overly restrict them. Keep the US at the forefront of innovation while protecting consumers through smart, targeted rules.
Sincerely,
Deandre Wood
