Comment Text:
Dear Chairman and Commissioners,
My name is Mau Brito, and I'm an everyday citizen from Florida writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on platforms like Kalshi and Polymarket, and I strongly support the CFTC creating a well-regulated framework for prediction markets rather than imposing bans or overly restrictive rules.
Ive seen firsthand how valuable prediction markets can be. Their forecasts on elections and public events are often more accurate than polls or pundits. Ive used these platforms to get a clearer picture of whats likely to happen, whether its a presidential race or an economic policy shift. That kind of information isnt just useful for traders like me; it helps everyone make better decisions, from regular folks to policymakers. Plus, Ive used these markets to hedge personal financial risks. For example, during the last election cycle, I placed trades to offset potential impacts on my small side business due to possible tax changes. This isnt gambling. Its a practical tool, much like trading stocks or commodities, based on research and real-world judgment.
I also believe the US should be a leader in financial innovation. If we over-restrict or ban these markets, were just pushing activity to unregulated offshore platforms, which are far less safe than a regulated exchange like Kalshi. Id much rather trade on a platform overseen by the CFTC, where there are protections against fraud and manipulation. Speaking of which, the CFTC already has strong tools to tackle insider trading and market manipulation in other derivatives markets. I trust those can be applied here without shutting down an entire industry. Banning prediction markets to stop a few bad actors makes no sense to me; its like closing the stock market over insider trading scandals.
Id like to address a few specific questions from the ANPR. On Question 7, regarding public interest, I think prediction markets serve a clear public good through price discovery and risk management. On Question 15, about defining gaming, I strongly feel event contracts arent gambling; they have legitimate economic purposes like hedging and forecasting. And on Question 29, about inside information, I believe informed trading actually improves price accuracy, benefiting all participants, as long as existing laws against insider trading are enforced.
Im asking the CFTC to support proportionate regulation of prediction markets. Dont ban or overly restrict them. Create a framework that protects consumers while allowing innovation and access for everyday people like me. Lets keep the US at the forefront of financial markets and ensure these tools remain available on regulated platforms.
Thank you for considering my input.
Sincerely,
Mau Brito
