Comment Text:
Dear Chairman and Commissioners,
My name is Jeff Brooks, and I'm just a regular citizen from Texas writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I'm new to prediction markets, but I strongly support their existence under fair and reasonable regulation. I believe they offer unique value to people like me, to businesses, and to society as a whole, and I want to see the CFTC regulate them in a way that keeps them accessible without overdoing it.
Ive seen firsthand how hard it is to get reliable information these days. Polls and pundits often miss the mark, but prediction markets seem to cut through the noise. Their forecasts are often more accurate because theyre based on real people putting their money where their mouth is. That kind of information isnt just helpful for traders; its useful for everyone, from regular folks trying to make sense of the world to policymakers needing better data. I also think these markets let people and businesses hedge against real risks. For instance, a small business owner might use them to protect against policy changes or economic shifts. Thats not gambling, its practical.
Im worried about over-regulation, though. If the CFTC clamps down too hard, itll just push activity to offshore platforms where theres no oversight at all. Id rather see these markets stay legal and regulated here in the US, where they can be monitored. Plus, the US should be leading the way in financial innovation, not falling behind other countries. Banning or over-restricting prediction markets would hurt our competitiveness and raise costs for everyone, while doing nothing to stop black market options from popping up.
I also want to address a couple of specific questions from the ANPR. On Question 7, about balancing innovation and consumer protection, I think the CFTC already has solid tools to prevent manipulation and insider trading in other markets. Use those same tools here instead of creating new barriers. On Question 15, regarding whether event contracts are gaming, I dont think they should be classified that way. They serve real economic purposes like hedging and price discovery, just like other investments. And on Question 29, about inside information, I believe informed trading actually helps make prices more accurate, benefiting everyone in the market.
I know there are concerns about bad actors, and I get that. But shutting down or over-regulating these markets punishes honest participants like me who just want a fair shot at using them. Please focus on targeted rules for specific risks instead of broad restrictions. I urge the CFTC to support proportionate regulation of prediction markets so they can thrive legally and safely in the US.
Thank you for considering my input.
Sincerely,
Jeff Brooks
