Comment Text:
Dear Chairman and Commissioners,
My name is Brooke Bombardier, and I'm a regular citizen from Kansas 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 strongly support their place in a well-regulated financial system. I believe they offer unique benefits to people like me, and I want to see the CFTC craft rules that protect consumers while allowing these markets to thrive.
I've always been frustrated by how often election polls and pundit predictions get things wrong. Prediction markets seem to cut through the noise. From what I've read, their prices often reflect what's really likely to happen better than any survey or talking head on TV. That's valuable not just for traders but for anyone trying to understand the world, whether it's an election outcome or some other big public event. I also see how these markets can help everyday people and small businesses manage risks. For instance, a local business owner here in Kansas might use a prediction market to hedge against policy changes after an election that could affect their costs. That kind of practical use shouldn't be dismissed.
I'm also a firm believer in personal freedom to participate in legal, regulated markets. Banning or over-restricting prediction markets won't make them disappear; it will just push people to unregulated offshore platforms where there's no oversight or consumer protection. I'd much rather see the CFTC set clear, fair rules to keep these markets safe and transparent right here in the US. Plus, I've come across academic studies showing how prediction markets aggregate information efficiently, often through informed trading. That benefits everyone by making prices more accurate, not just the people placing bets. Informed trading isn't a flaw; it's a strength.
I want to address a couple of specific questions from the ANPR. On Question 7, about balancing innovation and consumer protection, I think the CFTC should prioritize rules that prevent fraud and manipulation while still letting new platforms grow. And on Question 29, regarding inside information, I believe informed traders often improve price discovery. The focus should be on enforcing existing laws against insider trading, not shutting down entire markets.
I understand there are risks with prediction markets, like potential manipulation or misuse. But the answer isn't to ban them. It's to regulate them smartly. The CFTC already has tools to tackle bad actors in other markets, and those can work here too. Please don't let a few potential problems punish the rest of us who see real value in these tools.
I urge you to support proportionate regulation of prediction markets. Keep them accessible to everyday people like me under a framework that ensures safety and fairness. Thank you for considering my perspective.
Sincerely,
Brooke Bombardier
