Comment Text:
Dear Chairman and Commissioners,
My name is Jorge Lares, and I'm just a regular citizen from Texas writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've used prediction markets a few times, and I believe theyre a valuable tool that deserves fair regulation, not heavy-handed restrictions. Im not an expert or a big investor, just someone who sees the potential here and wants to make sure everyday people like me arent shut out.
I support well-regulated prediction markets because they give people like me a chance to participate in something thats not just for Wall Street or big institutions. The information you get from these markets, like forecasts on elections or economic events, is often sharper than what you hear from pundits or polls. Ive looked at platforms like Kalshi to weigh in on things that matter to me, like political outcomes that could affect my taxes or local policies here in Texas. Its not gambling, its using judgment and research, much like picking a stock. Plus, it feels fair to have a stake in understanding whats happening in the world. Locking regular folks out of these markets would only keep the best information in the hands of the elite, and thats not right.
One thing Im really concerned about is the U.S. losing ground on financial innovation. If we over-regulate or ban prediction markets, were just pushing this activity to other countries where theres less oversight. Ive read about offshore platforms that arent regulated at all, and Id much rather see the U.S. lead the way with safe, transparent markets under the CFTCs watch. Weve always been a country that pioneers new ideas. Why should we hand that advantage to someone else? On this point, Im drawn to Question 7 from your ANPR, about balancing innovation with consumer protection. I think you can do both by setting clear rules, not outright bans.
I know there are worries about things like insider trading or manipulation, and those are real concerns. But those issues are already illegal, and the CFTC has the power to crack down on bad actors. Shutting down entire markets to stop a few cheaters feels like overkill. Its like closing a highway because some people speed. Use the tools youve got to enforce the law, dont punish everyone else.
I urge you to support proportionate regulation of prediction markets. Let regular citizens like me participate in legal, regulated spaces. Dont let over-restrictions push innovation overseas or lock us out of a system that can benefit everyone with better information and fair access. Thank you for considering my input.
Sincerely,
Jorge Lares
