Comment Text:
Dear Chairman and Commissioners,
My name is Winston Yang, and I'm just a regular citizen from California 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 myself, and I believe they serve a valuable purpose that deserves fair and balanced regulation, not heavy-handed restrictions.
I support well-regulated prediction markets because they offer something unique. They provide information and insights that you can't find in polls or news commentary. I've seen firsthand how the collective wisdom of these markets often predicts outcomes better than so-called experts. This isn't just helpful for traders like me; its useful for the public, businesses, and even policymakers who need accurate data to make decisions. Beyond that, prediction markets let everyday people like me have a stake in understanding and engaging with important events. That feels democratic and fair, especially when the alternative is leaving all the financial tools to big institutions.
One of the biggest reasons I'm writing is because prediction markets help individuals and businesses hedge real financial risks. For example, I've used these platforms to offset uncertainty around economic events that impact my personal budget, like inflation data releases that affect my cost of living. If I can put a small amount into a contract to protect myself against a bad outcome, thats not gambling; its practical planning. I know small businesses do this too, hedging against policy changes or election results that could hit their bottom line. This isnt about betting for fun. Its about managing real-world exposure, just like any other investment.
I also worry that over-regulating or banning these markets would hurt U.S. competitiveness. If we push prediction markets offshore by making rules too strict, we lose the chance to lead in financial innovation. Other countries will step in, and Americans will end up using less safe, unregulated platforms. Thats not a win for anyone. On the flip side, I get the concern about things like insider trading or manipulation. But those are already illegal, and the CFTC has the power to enforce those laws. Punishing everyone by shutting down markets because of a few bad actors doesnt make sense to me.
Id like to address a couple of specific questions from the ANPR. On Question 7 under Public Interest, I believe prediction markets do serve the public by improving price discovery and risk management, as Ive described. And on Question 15 under Listed Activities, I urge you not to classify these contracts as gaming. Theyre tools for hedging and informed decision-making, not slot machines.
In closing, I ask that the CFTC support proportionate regulation of prediction markets. Please dont ban or overly restrict them. Focus on targeted rules to address specific risks while letting these valuable tools remain accessible to people like me.
Sincerely,
Winston Yang
