Comment Text:
Dear Chairman and Commissioners,
My name is Nathan McDonald, and I'm just an everyday citizen from Georgia 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-time trader, but I believe regular folks like me should have a say in how these markets are regulated. I'm new to prediction markets, but I strongly support their existence under fair, sensible rules.
I value the freedom to participate in legal, regulated markets. Prediction markets offer a unique way for people like me to engage with real-world events, whether it's an election outcome or an economic indicator, and make informed decisions based on what I learn. I don't see this as gambling. It takes research and judgment, much like any other kind of investing. What worries me is the idea of banning or over-restricting these markets. If the CFTC makes it too hard to trade on platforms like Kalshi, which are regulated and based in the U.S., then people will just turn to unregulated offshore sites. Those places don't have oversight, and there's no protection if something goes wrong. I'd much rather see the CFTC focus on keeping legitimate markets safe and accessible here at home.
I also believe the CFTC already has the tools it needs to handle problems like manipulation or insider trading. From what I've read, you have broad authority to go after bad actors in any regulated market. Adding new bans or heavy restrictions feels like overkill when you can already enforce the rules that exist. Shutting down or limiting prediction markets to stop a few cheaters punishes everyone else who wants to participate honestly. It's like closing a highway because a few drivers speed.
In response to some of your specific questions, like those in Topic Area B about public interest (Questions 7-14), I think the balance should tip toward innovation and access. Regulated markets benefit regular people by giving us information and a stake in understanding the world. And for Topic Area C on listed activities (Questions 15-22), I hope you won't label these markets as gaming just to restrict them. They serve a real purpose beyond entertainment.
I urge you to support proportionate regulation of prediction markets. Don't ban them or pile on restrictions that push activity offshore to unsafe platforms. Keep them legal, regulated, and open to everyday citizens like me under fair rules that use the tools you already have.
Thank you for considering my input.
Sincerely,
Nathan McDonald
