Comment Text:
To whom it may concern,
I am writing to strongly encourage the CFTC to permit and expand the use of prediction markets in the United States. Prediction markets have demonstrated significant value as forecasting tools and information aggregation mechanisms across a wide range of domains. By allowing individuals to trade contracts tied to future events, these markets efficiently incorporate diverse knowledge and perspectives, often producing more accurate predictions than traditional forecasting methods.
Expanding access to properly regulated prediction markets could yield substantial benefits for businesses, policymakers, researchers, and the general public. These markets can provide early warning signals for potential risks, help allocate resources more efficiently, and improve decision-making processes. Furthermore, prediction markets promote engagement with important issues and incentivize individuals to seek out and act on accurate information. To fully realize these benefits, the regulatory framework should be updated to provide clarity and reduce barriers to entry for prediction market operators and participants.
I urge the CFTC to take a proactive approach in developing guidelines that protect market integrity and consumers while fostering innovation in this space. This could include creating a regulatory sandbox for new prediction market models, establishing clear rules around contract design and risk management, and collaborating with academic researchers to study the impacts and potential applications of these markets. By embracing prediction markets, the CFTC has an opportunity to position the U.S. as a leader in harnessing the wisdom of crowds for public benefit.
Yours truly,
Yonatan Kaganoff
