Comment Text:
Dear Chairman and Commissioners,
My name is Matt Ryan, and I'm an everyday citizen from Washington state writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I'm not an expert or a big-time trader, just someone who believes in the value of fair, open markets and wants to see the United States stay ahead in financial innovation. I'm new to prediction markets, but I strongly support their existence under proper regulation, and I hope my perspective is useful as you consider how to approach this space.
I believe every American should have the freedom to participate in legal, regulated markets, including prediction markets. These platforms aren't just for Wall Street insiders. They give regular people like me a chance to engage with real-world events, make informed decisions, and even hedge against uncertainties that affect our lives, whether it's an election outcome or an economic policy change. Banning or over-restricting these markets would shut out ordinary folks and keep all the benefits with big institutions. That doesn't seem right to me.
One thing that really stands out is the difference between regulated markets like Kalshi, which operate under CFTC oversight, and unregulated offshore platforms. I've read about how some people turn to these offshore sites when access is limited here. That worries me. If we push activity overseas by being too restrictive, we're not protecting anyone. We're just making things less safe, with no oversight or accountability. I'd much rather see the CFTC regulate these markets here in the US, where there are rules and protections in place.
I also understand there are concerns about manipulation or insider trading. But from what I've learned, the CFTC already has strong tools to tackle those issues in other markets like futures or commodities. Can't those same tools be applied here? I don't think we need to ban entire categories of contracts or shut down prediction markets to deal with a few bad actors. That feels like overkill, and it punishes people who are playing by the rules. I'm particularly drawn to your questions 29 through 32 on inside information. I believe the CFTC can address those risks with targeted enforcement of existing laws, without throwing out the whole concept of event contracts.
The US has always been a leader in financial innovation, and I think prediction markets are part of that future. We shouldn't cede ground to other countries by being too cautious. I urge you to support proportionate regulation that keeps these markets accessible, safe, and under CFTC supervision. Don't ban or overly restrict them. Let's keep this opportunity open for everyday Americans while addressing real risks with the tools you already have.
Thank you for considering my input.
Sincerely,
Matt Ryan
