Comment Text:
Dear Chairman and Commissioners,
My name is Lexi McNichol, and I'm just a regular person from Colorado writing to share my thoughts on 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 want to express my support for keeping them accessible under fair regulation. Honestly, I think they're kind of fun, but more importantly, they give people like me a chance to engage with events and ideas in a unique way.
I believe strongly in the freedom to participate in legal, regulated markets. Prediction markets aren't just a game to me; they're a way to have a stake in understanding what's happening in the world. I've used platforms like Kalshi, which is regulated by the CFTC, and I feel a lot safer knowing there's oversight. Compare that to unregulated offshore platforms where there's no accountability. If we over-restrict or ban these markets here, people will just go to those shadier sites, and that seems like a worse outcome for everyone. Regulated markets keep things transparent and protect users like me.
I also think the US should be a leader in financial innovation. Why let other countries take the lead on something that could be a big deal for our economy and for regular folks getting access to new tools? Prediction markets are a cool way to crowdsource information and make better guesses about the future than polls often do. If we clamp down too hard, we risk pushing this innovation somewhere else, and I don't want to see that happen.
Looking at some of the specific questions in the ANPR, I want to address a couple from the Public Interest section, like Question 7 on balancing innovation and consumer protection. I think regulation should focus on keeping markets safe without killing the ability to try new things. And for Question 14, about whether these markets are like gambling, I don't see it that way at all. It takes research and thought, just like investing in stocks. It's not a slot machine.
I'm not saying there aren't risks. Sure, some people might try to game the system. But the CFTC already has rules against manipulation and insider trading in other markets. Use those tools here instead of banning or over-restricting something that benefits regular people. I urge you to support proportionate regulation of prediction markets, ensuring they stay accessible on regulated platforms while addressing specific risks with targeted rules.
Thank you for considering my perspective.
Sincerely,
Lexi McNichol
