Comment Text:
Dear Chairman and Commissioners,
My name is Tyler Ptachcinski, and I'm a finance professional based in Connecticut. I'm writing to express my support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've used prediction markets a few times myself, and I believe they serve a valuable purpose when properly overseen by the CFTC. I want to share my perspective on why these markets matter and how they should be regulated.
As someone who works in finance, I see prediction markets as a unique tool for generating information that isn't available through traditional channels. The prices often reflect a clearer picture of future events than polls or expert opinions, which helps not just traders like me but also the broader public and decision-makers. I value the freedom to participate in legal, regulated markets because they democratize access to this kind of insight. Shutting down or over-restricting these markets would mean losing that benefit and pushing activity to unregulated offshore platforms where there are no consumer protections. I've seen platforms like Kalshi operate under CFTC oversight, and that's the kind of safe, transparent environment we need, not a ban that drives people to riskier alternatives.
I also believe the U.S. should be a leader in financial innovation. If we impose overly broad restrictions, we risk ceding this space to other countries that are more willing to embrace new ideas. Prediction markets are a chance to show how regulation can foster innovation while still protecting consumers. I'm not saying there aren't risks. I get that manipulation or insider trading could be issues, but the answer isn't to ban entire categories of contracts. The CFTC already has tools to address bad actors in other markets, and I think targeted, proportionate rules can work here too.
Looking at some of the specific questions in the ANPR, I want to touch on a few that resonate with me. On Question 7, regarding public interest, I think prediction markets serve the public by improving price discovery and information access, as long as they're regulated to prevent abuse. On Question 23, about procedural aspects, I believe the CFTC should focus on case-by-case reviews rather than blanket prohibitions to avoid stifling legitimate markets. And on Question 33, about classification, I urge you to avoid overly burdensome rules that could hurt smaller participants or drive activity offshore.
In closing, I ask the CFTC to support proportionate regulation of prediction markets. Don't ban or overly restrict them. Keep them safe and accessible under your oversight so people like me can continue to participate legally and responsibly. Thank you for considering my input.
Sincerely,
Tyler Ptachcinski
