Comment Text:
Dear Chairman and Commissioners,
My name is Daniel Massaro, and I'm a business owner from Pennsylvania. Im writing to share my support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, published in the Federal Register at 91 FR 12516. Im fairly new to these markets myself, but Ive seen enough to believe they offer real value, both to me as a small business owner and to society at large. I want to urge the CFTC to craft rules that encourage innovation while protecting consumers, not to impose heavy-handed bans or restrictions.
As someone running a business, I rely on accurate information to make decisions, whether its about hiring, investing in equipment, or planning for policy changes. Prediction markets stand out because they often provide forecasts on elections and public events that are more reliable than polls or pundits. Ive noticed how often the so-called experts get it wrong, while these markets cut through the noise with hard data. That kind of clarity helps me plan better, and I think its a public good for everyone, not just traders. Beyond that, I value the freedom to participate in legal, regulated markets. Shutting regular people like me out of these platforms, or over-restricting them, just means the best information stays with big institutions. Thats not fair, and it makes the markets less accurate.
Im also concerned about what happens if the CFTC goes too far with restrictions. Regulated platforms like Kalshi are transparent and accountable. If prediction markets get banned or choked with rules, people will just turn to unregulated offshore sites with no oversight. Thats worse for consumer protection, not better. Id much rather see the US lead on financial innovation, setting a global standard, than cede that ground to other countries. We have the chance to shape this space with smart, targeted rules, and I hope we take it.
On a related note, I strongly believe event contracts arent gambling. They serve real economic purposes, like hedging risks or discovering prices for uncertain events. As a business owner, I can see myself using these markets to offset risks tied to policy shifts or economic data releases. Classifying them as gaming, as some suggest, feels like a misstep to me. Ive also read about academic research backing prediction markets for their ability to aggregate information efficiently, and I think that transparency is worth supporting.
Id like to touch on a couple of specific questions from the ANPR. Regarding Question 7 under Public Interest, I believe prediction markets do serve the public by improving decision-making with better data. And on Question 15 under Listed Activities, I urge the CFTC to avoid labeling these contracts as gaming and instead focus on their economic utility. My ask is simple: please support proportionate regulation that addresses specific risks like manipulation or insider trading without broad categorical bans. Lets keep these markets accessible, safe, and innovative.
Thank you for considering my input.
Sincerely,
Daniel Massaro
