Comment Text:
Dear Chairman and Commissioners,
My name is Armando Latorre, and I'm writing to you from Arizona regarding the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I'm not someone with a long history in financial markets or trading, but I recently learned about prediction markets and believe they have real value for people like me. I wanted to share my thoughts and urge you to support fair, regulated access to these markets rather than imposing heavy restrictions or bans.
As someone new to prediction markets, I see them as a unique tool that lets regular folks like me have a say in forecasting important events, whether it's an election outcome or an economic policy change. I value the freedom to participate in legal, regulated markets where my voice, even if it's just through a small trade, can contribute to a bigger picture of public opinion. It's not about gambling to me. It's about having access to a system that aggregates information in a way polls or news outlets often can't match. I think that's worth protecting.
I understand there are concerns about things like insider trading or market manipulation. Those are real issues, no doubt. But I don't think the answer is to shut down entire categories of prediction markets or make it so hard for regular people to participate that only big players can get in. Instead, I'm asking for proportionate regulation that targets specific risks without punishing everyone else. The CFTC already has tools to go after bad actors in other markets. Why not use those same powers here? Banning or over-restricting these markets feels like using a sledgehammer when a scalpel would do the job.
I'm particularly interested in your questions under Topic Area B, like Question 7 on balancing innovation with consumer protection. I think allowing prediction markets to grow under clear, fair rules strikes that balance. It lets innovation happen while keeping safeguards in place. Also, on Question 15 under Topic Area C about defining what kinds of contracts should be allowed, I believe the focus should be on whether a contract serves a legitimate purpose, like price discovery or hedging, not on broad labels that could wipe out useful markets.
I hope the CFTC will move forward with rules that support prediction markets and keep them accessible to everyday Americans. Please focus on targeted regulations to address specific problems rather than broad bans that could stifle something valuable. Thank you for considering my input.
Sincerely,
Armando Latorre
