Comment Text:
Dear Chairman and Commissioners,
My name is Andrew Hinojosa, and I'm a college student from California writing to comment 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 them being regulated in a fair and balanced way, and I want to share why they matter to someone like me.
I'm not well-off at all. I'm struggling to pay for school supplies and basic needs. My car has been broken down for weeks, and I can't afford to fix it. The job market is rough right now, and finding steady work as a student feels impossible. Prediction markets have become a small source of income for me. I haven't won much lately, honestly, but even the little bit Ive made helps cover things like textbooks or gas. This isn't just a game to me. It's a way to get by when traditional options aren't cutting it.
Beyond my own situation, I see how prediction markets can help people like me manage real financial risks. For example, if I'm worried about a policy change or an economic shift that could make my situation even worse, like a spike in rent or tuition costs tied to inflation data, I could use these markets to hedge against that uncertainty. It's not much different from how businesses might protect themselves from price changes or new regulations. This kind of tool shouldn't be taken away from regular people who are just trying to make ends meet.
I also think it's important that these markets are regulated properly, like on platforms such as Kalshi, which operate under CFTC oversight. I've read about unregulated offshore platforms, and they sound risky. No one like me wants to lose what little money they have to a shady site with no accountability. Keeping prediction markets regulated here in the U.S. makes them safer for everyone, and it keeps the activity from just moving to places with no rules at all.
I'd like to address a couple of the questions in your notice, specifically from Topic B on Public Interest, like Question 7 about balancing innovation and consumer protection. I think prediction markets are innovative because they give people access to information and tools that big institutions already have. But I get the need for protection too. That's why regulation, not bans, is the answer. Also, on Question 9 about risk management, I believe these markets are a real way for individuals to manage personal financial risks, just as I described.
I ask that you support proportionate regulation of prediction markets. Don't ban them or make the rules so strict that people like me can't participate. Theyre a lifeline for some of us, and with the right oversight, they can be safe and useful for everyone.
Sincerely,
Andrew Hinojosa
