Comment Text:
Dear Chairman and Commissioners,
My name is Zachary Wetzel, and I'm a trader and investor from New Jersey. I've dabbled in prediction markets a few times, and Im writing to express my support for well-regulated event contracts as outlined in the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these markets offer unique value to individuals like me, as well as society at large, and I urge the CFTC to craft rules that encourage their growth while addressing legitimate risks with targeted solutions.
As a trader, I see firsthand how prediction markets provide information you can't get anywhere else. The prices reflect a crowd's collective wisdom, often outpacing polls or pundits. This isn't just good for those of us trading; its valuable for public decision-making and price discovery. I also appreciate the ability to hedge real financial risks. For example, I once took a contract on snowfall amounts to offset the hassle and cost of shoveling out my car during a brutal Jersey winter. Thats the beauty of these markets, something people often misunderstand. They let regular folks manage everyday risks, whether its weather, economic shifts, or policy changes that hit our wallets.
I strongly believe event contracts aren't gambling. They serve real economic purposes like hedging and price discovery, much like trading stocks or commodities. Calling them "gaming" feels like a stretch, and I suspect some state objections are less about protecting constituents from moral hazards and more about preserving the hefty taxes they slap on sports betting and bookmakers. The CFTC shouldnt let that kind of agenda derail legitimate markets. Regarding your questions 15-22 on listed activities, I urge you to define gaming narrowly and recognize the economic utility of event contracts, distinct from mere speculation.
I also want to address concerns about manipulation and insider trading, as raised in questions 29-32. Informed trading actually improves price discovery and benefits everyone in the market by making prices more accurate. Yes, bad actors are a concern, but the CFTC already has strong tools to tackle manipulation and insider trading in other derivatives markets. Use those existing powers rather than imposing broad bans or over-restrictions that punish honest participants like me. Shutting down prediction markets to stop a few cheaters would be like closing the stock market over insider trading scandals. Its not the answer.
Finally, on questions 7-14 about public interest, I believe regulated markets strike the right balance between innovation and consumer protection. They also keep activity onshore with oversight, rather than pushing it to unregulated offshore platforms. Freedom to participate in legal, regulated markets matters to me as an investor, and I ask the CFTC to support proportionate regulation that allows prediction markets to thrive without unnecessary barriers.
Thank you for considering my input.
Sincerely,
Zachary Wetzel
