Comment Text:
Dear Chairman and Commissioners,
My name is Britney Williams, and I'm a nursing student from California. In my spare time, I dabble in trading and investing, and I've recently started exploring prediction markets. I'm writing to express my support for the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these markets offer unique value to people like me and to society as a whole, and I urge the CFTC to regulate them in a balanced, thoughtful way rather than imposing broad bans or overly strict rules.
As a student, I don't have a lot of money to throw around, but Ive found prediction markets fascinating because they give me a chance to engage with real-world events in a way that feels meaningful. Watching the predictions unfold is exciting, and it's taught me a lot about how information comes together to reflect what might happen with elections or other big public events. I think these markets are often more accurate than polls or pundits, and that kind of insight is helpful not just to traders but to everyone who wants better information to make decisions. I've also started thinking about how I could use these markets to hedge small personal financial risks, like changes in policy that might affect my student loans or future healthcare costs.
I understand there are concerns about manipulation or insider trading, and I agree those issues need to be addressed. But the CFTC already has strong tools to tackle fraud and abuse in other markets, and I believe those can be applied here too. Banning or over-restricting prediction markets would just push activity to unregulated offshore platforms, which are far less safe for consumers like me. I'm also worried that if the US doesn't lead on this kind of financial innovation, other countries will, and we'll miss out on the benefits. Regulated markets, like Kalshi on a CFTC-registered DCM, seem like a much better option.
I'd like to touch on a few specific questions from the ANPR. Regarding Questions 7-14 on public interest, I think prediction markets serve a real purpose in price discovery and forecasting, benefiting not just participants but the broader public. On Questions 15-22 about listed activities, I strongly believe event contracts aren't gambling; theyre based on research and judgment, much like stock trading, and they help people hedge real risks. Finally, on Questions 29-32 about inside information, I think informed trading actually improves price accuracy, and existing laws already prohibit federal employees from misusing nonpublic information.
I also want to note that academic research supports the value of these markets, and as a student, I appreciate how they make data and forecasts more transparent for study and analysis. Please support proportionate regulation that addresses specific risks without shutting down this innovative tool. Prediction markets give regular people like me a fair shot to participate, and I believe they deserve a place in a well-regulated financial system.
Thank you for considering my input.
Sincerely,
Britney Williams
