Comment Text:
Dear Chairman and Commissioners,
My name is Jet Phillips, and I'm just a regular citizen from Wisconsin 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 trader, but I've recently learned about prediction markets and believe they have real value for people like me and for our country as a whole. I want to urge the CFTC to support these markets with fair, balanced regulation instead of heavy restrictions or bans.
Im new to prediction markets, but what draws me to them is how they can provide better information for everyone. Unlike polls or pundits, which often seem swayed by bias or just miss the mark, prediction markets pull together what people actually think by putting real money on the line. That kind of price discovery isn't just useful for traders; it helps regular folks like me understand what's likely to happen with elections, economic shifts, or other big events. It could even help policymakers make smarter decisions with clearer data. I think that's worth protecting.
Another reason I'm writing is that I believe the United States should be a leader in financial innovation. If we over-regulate or shut down prediction markets here, we're just pushing this activity to other countries where there might be no oversight at all. That doesn't make sense to me. We have the chance to set the standard, to show how these markets can work safely and transparently. Why let other nations take the lead when we can build something better right here? I'd hate to see us fall behind on something that could be so useful.
I understand there are concerns about manipulation or insider trading, and those are real issues. But the CFTC already has tools to deal with bad actors in other markets, and I believe those can be applied here too. Banning or over-restricting prediction markets just punishes everyone for the actions of a few. Specifically, in response to Questions 7 and 8 from the ANPR under the Public Interest section, I think the balance should tilt toward innovation while using existing safeguards to protect consumers. And for Questions 33 to 35 on classification, I hope the CFTC avoids overly broad categories that might stifle these markets before they can even grow.
I'm asking you to support proportionate regulation that lets prediction markets thrive while addressing specific risks with targeted rules. Let's keep the United States at the forefront of financial innovation and make sure everyday people like me can benefit from the information these markets provide. Thank you for considering my perspective.
Sincerely,
Jet Phillips
