Comment Text:
Dear Chairman and Commissioners,
My name is Malcolm Nguyen, and I'm a software engineer working in fintech here in California. Im writing to express my strong support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). As someone who actively trades on platforms like Kalshi and Polymarket, Ive seen firsthand the value these markets provide, and I believe the CFTC should craft rules that encourage their growth under fair oversight rather than imposing bans or overly restrictive regulations.
Prediction markets arent just a niche hobby for me; theyre a powerful tool for understanding the world. Ive relied on them to get a clearer picture of election outcomes and other public events, often finding their forecasts more accurate than polls or pundit opinions. Working in tech, I value data-driven insights, and these markets aggregate information in a way nothing else does. This isnt gambling. Its a process of research and judgment, much like trading stocks or commodities. Classifying event contracts as gaming ignores their real economic purpose, whether its price discovery or giving people like me a way to hedge against uncertainty. I urge the CFTC to recognize this distinction when addressing questions like 15 and 16 on listed activities.
I also believe that allowing regular people to participate in these markets is a strength, not a problem. Democratized access means better information for everyone, not just big institutions. When I trade on a regulated platform like Kalshi, I know there are safeguards in place, unlike the risks of unregulated offshore sites. Banning or over-restricting prediction markets wont stop trading; itll just push people like me to less safe venues. On questions 7 and 8 regarding public interest, I think the CFTC should prioritize keeping activity within regulated U.S. markets to protect consumers and maintain oversight.
Another point I care about is U.S. competitiveness. In fintech, I see how fast innovation moves globally. If we stifle prediction markets here, other countries will take the lead. We should be shaping this space with smart rules, not ceding ground. And on the concern about insider trading raised in questions 29 through 32, Id argue that informed trading often improves price discovery, benefiting all participants. Existing laws already prohibit federal employees and others from abusing nonpublic information, and the CFTC has tools to tackle manipulation. Shutting down markets to stop a few bad actors punishes the rest of us.
I hope the CFTC will support proportionate regulation that allows prediction markets to thrive while addressing specific risks with targeted rules. Lets keep these markets accessible, regulated, and innovative right here in the U.S.
Sincerely,
Malcolm Nguyen
