Comment Text:
Dear Chairman and Commissioners,
My name is Davis Beech, and I'm a student from Utah writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've had some personal experience with prediction markets, having used them a few times to explore how they work and to engage with real-world events in a unique way. I strongly support the idea of well-regulated prediction markets, and I want to offer my perspective on why they should be accessible to people like me and not overly restricted.
As a student, I value the freedom to participate in legal, regulated markets. Prediction markets aren't just a niche hobby; they offer a way for ordinary folks to engage with information and events that shape our lives. I've used them to follow political and economic outcomes, and Ive found the prices often reveal insights you can't get from news or polls. This isn't about gambling, which I know is a concern for some. To me, trading on these platforms takes research and critical thinking, much like investing in stocks or other financial instruments. Classifying event contracts as "gaming" feels wrong when they serve real economic purposes, like helping people understand risks or hedge against uncertainty. Id urge the CFTC to consider this distinction when addressing questions 15 through 22 on listed activities and how to define legitimate markets.
I also believe that informed trading, far from being a problem, actually makes prediction markets better for everyone. When people who know a lot about a topic trade, their knowledge gets baked into the prices. That helps create more accurate forecasts, which benefits not just traders but anyone who looks at the data, including policymakers or businesses. I know insider trading is a worry, and I get that. But existing laws already prohibit federal employees and others from misusing nonpublic information, and the CFTC has tools to tackle manipulation. Banning or over-restricting these markets to stop a few bad actors punishes the rest of us who just want to participate fairly. On questions 29 to 32 about inside information, Id encourage the CFTC to focus on enforcing current rules rather than limiting access for everyone.
Prediction markets are a powerful tool for democratizing information, and I think the U.S. should lead the way in fostering them under sensible oversight. I'm not a financial expert, just a student who sees value in being able to engage with these platforms. Please support proportionate regulation that keeps markets safe but doesnt shut out regular people like me or mislabel these contracts as gaming.
Thank you for considering my input.
Sincerely,
Davis Beech
