Comment Text:
Dear Chairman and Commissioners,
My name is Shreyas Garg, and I’m a trader and investor based in California. I’m writing to express my strong support for the proportionate regulation of prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). As someone who has used prediction markets a few times, I’ve come to value them as a unique tool to express my opinions about the world and to engage with events that impact my financial and personal life.
I believe prediction markets offer significant benefits to individuals like me and to society at large. First, they consistently produce more accurate forecasts than traditional polls or pundits. I’ve seen this firsthand during election cycles, where prediction market prices often cut through the noise of media speculation and provide a clearer picture of likely outcomes. This isn’t just useful for traders; it’s valuable information for the public, journalists, and even policymakers who need reliable data to make informed decisions. Regarding Question 7 from the ANPR on balancing innovation and consumer protection, I believe fostering these markets under fair rules enhances public interest by improving access to high-quality information.
Second, prediction markets allow individuals and businesses to hedge real financial risks. For me, as an investor, the ability to hedge against political or economic events—like an election outcome or a major policy shift—helps protect my portfolio from uncertainty. This isn’t gambling; it’s a practical tool, much like any other derivative market. In response to Question 11 on risk management, I urge the CFTC to recognize the legitimate hedging utility of event contracts and regulate them accordingly, rather than imposing overly restrictive bans.
Finally, I’m a firm believer in the freedom to participate in legal, regulated markets. Informed trading isn’t a problem—it’s a feature. When knowledgeable participants trade, they improve price discovery, which benefits everyone, not just those in the market. Addressing Question 29 on inside information, I acknowledge the concern about insider trading, but I believe existing laws and CFTC enforcement powers are sufficient to tackle bad actors without punishing the broader community by shutting down these markets. Banning prediction markets to stop a few bad apples would be like closing the stock market over insider trading scandals—it’s disproportionate and harms the wrong people.
I’m grateful for the CFTC’s thoughtful approach in seeking public input through this ANPR. I respectfully ask that you support the development of well-regulated prediction markets with targeted rules that address specific risks like manipulation, while preserving access for everyday participants like me. Let’s keep the U.S. at the forefront of financial innovation by regulating these markets sensibly, not restricting them unduly.
Sincerely,
Shreyas Garg
