Comment Text:
Dear Chairman and Commissioners,
My name is Kevin Bradley, and I'm a trader and investor based in Massachusetts. I've been involved in various financial markets for years, always looking for new ways to diversify and make informed decisions. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516) to express my strong support for well-regulated prediction markets. I'm relatively new to these markets, but I see their value and potential, and I believe the CFTC should focus on proportionate regulation rather than overly restrictive rules or outright bans.
As someone who trades and invests, I value the freedom to participate in legal, regulated markets. Prediction markets offer a unique way to gain insights that aren't available through traditional sources like polls or news. They aggregate real-world information through price signals, and that's something I find incredibly useful, even as a newcomer. I also appreciate that these markets aren't just for big institutions. They let regular people like me have a stake in understanding and predicting events that affect our lives, whether it's an election outcome or an economic policy change. To me, this feels more like investing than gambling, since it requires research and judgment, much like trading stocks or commodities.
My biggest concern is that banning or over-restricting prediction markets won't eliminate them; it will just push activity offshore to unregulated platforms. I've seen this happen in other areas of finance. If the U.S. tries to clamp down too hard, traders like me might turn to foreign sites that lack oversight, transparency, or consumer protections. Thats worse for everyone. A regulated market, like those operated by CFTC-registered entities, keeps things safer and ensures accountability. Id much rather trade on a platform where the CFTC can enforce rules against manipulation or fraud than on some shady offshore site.
I noticed a few questions in the ANPR that relate to my views. For instance, Question 7 asks about balancing innovation with consumer protection. I think the answer is clear: regulate these markets to prevent abuse, but dont stifle them. Question 14 compares prediction markets to insurance, and I see the parallel. Just like insurance helps manage risk, prediction markets let me hedge against uncertainties that impact my investments. And on Question 29 about inside information, I believe the CFTCs existing tools to combat insider trading in other markets can be applied here without banning entire categories of contracts.
I urge the CFTC to support the growth of prediction markets with sensible rules that protect participants while allowing innovation. Dont let over-regulation drive this activity out of the U.S. Thank you for considering my perspective.
Sincerely,
Kevin Bradley
