Comment Text:
Dear Chairman and Commissioners,
My name is Matt Miller, and I'm just an everyday citizen from Rhode Island. I'm writing 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, and I believe they can be a valuable tool for regular people like me. I want to share why I support well-regulated prediction markets and why I think the CFTC should focus on proportionate rules rather than broad restrictions.
For someone like me, prediction markets aren't just a game. They've offered a way to think about hedging personal financial risks. For instance, I've looked at contracts tied to economic events that could affect my household budget, like inflation data or interest rate decisions. Having a way to offset some of that uncertainty feels practical, not speculative. I think this kind of access is important for regular folks, not just big institutions. It levels the playing field a bit.
That said, I get the concerns about risks like insider trading or manipulation. I'm especially worried about politicians or federal officials betting on outcomes they can influence. Thats an obvious problem and should absolutely be banned. Insider trading in these markets needs strict oversight and strong penalties, no question. But shutting down entire markets or slapping on broad categorical bans isn't the answer. That just pushes people to unregulated offshore platforms, which are way riskier. I've seen ads for some of these sites, and there's no accountability there. A regulated market like Kalshi, under CFTC oversight, is a much safer place for people to participate. Regulation should protect consumers, not drive them to sketchy alternatives.
I'm drawn to some of the questions in your ANPR, like Question 7 on balancing innovation with consumer protection and Question 29 on inside information. I think the CFTC can strike a balance by targeting specific risks with clear, tough rules, like barring politicians from trading and cracking down on insider activity. You already have tools to fight manipulation in other markets. Use those here instead of over-restricting. Banning prediction markets to stop a few bad actors feels like punishing everyone for something most of us aren't doing.
I hope the CFTC will support proportionate regulation that keeps prediction markets accessible while addressing real concerns. Don't let heavy-handed rules or outright bans push activity underground. Focus on strong oversight and targeted protections to keep these markets safe and useful for everyday people like me.
Sincerely,
Matt Miller
