Comment Text:
Dear Chairman and Commissioners,
My name is David Painter, and I'm just an everyday citizen from Tennessee 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 investor, just someone who believes in the freedom to participate in legal, regulated markets. I've only recently learned about prediction markets, but I strongly support their role in our economy and think the CFTC should regulate them fairly without shutting them out.
I see prediction markets as a tool that can help regular people like me, as well as businesses, manage real risks. For example, I run a small side business selling handmade goods, and changes in tariffs or economic policies can hit my costs hard. Being able to hedge against those kinds of uncertainties through a prediction market could make a real difference in planning my budget. It's not gambling, it's a practical way to protect myself. I believe event contracts have a legitimate economic purpose, whether it's hedging against policy shifts, weather events, or other outcomes that affect our livelihoods. Calling this "gaming" feels wrong to me, it's more like any other kind of smart investing based on research and judgment.
Another thing that stands out to me is how informed trading in these markets can actually help everyone. When people who know a lot about a topic trade, their input makes the market prices more accurate. That benefits not just the traders but anyone who looks at those prices for information, whether it's a business making decisions or just a regular person trying to understand what's likely to happen. I'm concerned that over-restricting these markets would keep that valuable information locked away. In response to some of the questions in the ANPR, like those in Topic E about inside information (Questions 29-32), I'd say we shouldn't ban markets just because of potential misuse by a few. Instead, enforce the existing laws against insider trading and let the benefits of informed trading improve price discovery for all of us.
I also think about Topic B, on public interest (Questions 7-14), and believe that allowing regular folks to participate in these markets is fair and democratic. If only big institutions can trade, they keep all the insights to themselves. Letting people like me have access makes the system work better for everyone.
I urge the CFTC to support proportionate regulation of prediction markets. Please don't ban or overly restrict them. Focus on targeted rules to address specific risks while letting these markets provide their unique value to individuals and society. Thank you for considering my input.
Sincerely,
David Painter
