Comment Text:
Dear Chairman and Commissioners,
My name is Zayed Arredondo, and I'm just an everyday 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've been following the discussion closely, and I strongly support having them regulated properly instead of banned or overly restricted.
I believe prediction markets aren't gambling at all. They serve real purposes in our economy. When people trade on these platforms, they're using research and judgment to make informed bets about real-world events, much like they do with stocks or other investments. For someone like me, whos always trying to make sense of whats happening in politics or the economy, the information these markets provide feels unique and valuable. Its not just a game; its a way to understand the world better and even hedge against uncertainties that affect my life, like policy changes or economic shifts.
What worries me is the idea of banning or over-restricting these markets. If that happens, people won't stop trading; they'll just move to unregulated offshore platforms where theres no oversight. Ive read about platforms like Kalshi, which operate under CFTC rules, and that seems so much safer. Regulated markets have rules to protect users and prevent fraud. Pushing activity offshore would be a step backward, and I think its critical to keep these markets in the U.S. under your supervision. On top of that, the U.S. should be leading the way in financial innovation. If we shut down or limit prediction markets here, were just handing the future of this technology to other countries. I want America to stay ahead.
I noticed a few questions in the ANPR that relate to my concerns, like Question 7 on balancing innovation with consumer protection and Question 15 on defining what counts as gaming. Id urge you to consider that well-regulated markets already address many risks through existing CFTC tools, and event contracts arent gambling when they help people like me make sense of uncertainty or protect against financial risks. Banning them to stop a few bad actors feels like overkill, especially when it could drive activity to less safe places.
Im asking you to support proportionate regulation of prediction markets. Dont ban them or create rules so tight they cant function. Keep them here, under your oversight, so everyday folks like me can benefit from them safely. Thanks for taking the time to read my thoughts.
Sincerely,
Zayed Arredondo
