Comment Text:
Dear Chairman and Commissioners,
My name is Jordan Lucio, and I'm a student from Michigan. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I want to express my strong support for well-regulated prediction markets and urge the CFTC to create a framework that allows ordinary people like me to participate in these innovative financial tools.
As a student, I've been actively trading on platforms like Kalshi, a regulated prediction market. I got into it because I saw how these markets offer unique insights you can't find in polls or news. They're not just a way to make a few bucks; they help me understand real-world events better by putting a price on outcomes. I believe this information benefits everyone, from individuals to businesses, by helping us make smarter decisions. More than that, prediction markets let regular people like me hedge against risks that affect our lives. For instance, I've used these markets to offset potential financial impacts from election outcomes that could change policies on student loans or taxes. This isn't gambling; it's a practical tool, much like any other investment.
I also worry that over-restricting or banning these markets would push the US behind other countries in financial innovation. I've read about how places like Europe and Asia are exploring similar tools. If we don't lead on this, we'll lose out on shaping the future of finance, and activity will just move to unregulated offshore platforms. That seems far riskier than having a regulated space here at home. I'm not saying there aren't concerns, like insider trading or manipulation. But the CFTC already has laws and tools to tackle those issues in other markets. Why not adapt them here instead of shutting down something useful?
Specifically, regarding Questions 7 and 14 in the ANPR under Public Interest, I believe prediction markets serve a clear public good by enabling price discovery and risk management. They shouldn't be treated as gaming but as legitimate financial instruments. And on Question 33 under Classification, I think the focus should be on ensuring fair access for small participants like students, not just big institutions.
I ask the CFTC to support proportionate regulation of prediction markets. Don't ban or overly restrict them. Create rules that address specific risks while letting people like me continue to participate in legal, regulated markets. Thank you for considering my perspective.
Sincerely,
Jordan Lucio
