Comment Text:
Dear Chairman and Commissioners,
My name is Jorge Garcia, and I'm a regular citizen from Mississippi 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 these markets can be a good thing if done right. I've only recently learned about prediction markets, but I support them and want to see them regulated properly instead of banned or pushed into the shadows.
I think event contracts are not gambling. They aren't just games of chance, like flipping a coin or playing slots. When people trade on these markets, they're using real information, making judgments about things that matter in the world, like economic trends or election outcomes. It's more like investing in stocks than betting at a casino. These contracts serve a real purpose, whether it's helping someone hedge against a policy change that could affect their job or just getting better information about what's likely to happen. Calling this "gaming" feels wrong to me, and I worry it could lead to rules that miss the point of what these markets are for.
I'm also concerned about where these markets operate. I've read about platforms like Kalshi, which are regulated by the CFTC, and that seems a lot safer than the unregulated offshore sites out there. If we over-restrict or ban prediction markets here, people won't just stop trading. They'll go to those offshore platforms where there's no oversight, no protection. That seems riskier for everyone. I'd rather see the CFTC set clear, fair rules to keep these markets in the U.S., under your watch, where you can stop fraud or manipulation before it gets out of hand.
Looking at some of the questions in the ANPR, I think Question 15, about defining gaming versus legitimate markets, is important. I believe event contracts should be seen as economic tools, not games, because they help people make sense of uncertainty in a practical way. Also, on Question 7, about balancing innovation and consumer protection, I think regulated markets strike that balance better than pushing activity overseas.
I know there are concerns about things like insider trading or manipulation, and those are real issues. But the CFTC already has laws and tools to deal with bad actors. Let's not throw out a useful market just because a few might cheat. I urge you to support proportionate regulation of prediction markets, keeping them safe and accessible without over-restricting or banning them outright. Thank you for considering my perspective.
Sincerely,
Jorge Garcia
