Comment Text:
Dear Chairman and Commissioners,
My name is Sharon Cheng, and I'm writing from Texas to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've used prediction markets a few times myself, and I strongly support their continued operation under fair, proportionate regulation by the CFTC. I believe these markets provide real value to individuals like me, as well as to businesses and society as a whole.
Prediction markets aren't just a niche hobby. They help people and companies hedge against real financial risks. For instance, I've used them to get a sense of political or economic events that could impact my personal finances, like potential changes in tax policy or interest rates. That kind of insight lets me plan better, and I know small businesses in Texas use these tools to protect against regulatory shifts or trade policy changes. This isn't gambling. It's about managing uncertainty with research and judgment, much like trading stocks or commodities. Classifying event contracts as "gaming" ignores their legitimate economic purpose, and I urge the CFTC to recognize this in response to Questions 15-22 on listed activities.
I also worry that banning or over-restricting these markets will just push activity offshore to unregulated platforms. I've seen how easy it is to access foreign sites, but I'd much rather trade on a CFTC-regulated market where there are protections in place. If the U.S. shuts down or overly limits prediction markets, we lose oversight and drive innovation elsewhere. The U.S. should be leading in financial innovation, not ceding ground to other countries. I hope the CFTC considers this under Questions 7-14 regarding public interest and balancing innovation with consumer protection.
Another point I want to make is about informed trading. I believe traders with good information actually improve price discovery, which benefits everyone, not just those in the market. The prices on prediction markets often seem more accurate than polls or pundit opinions, and that's valuable data for the public. Yes, insider trading is a concern, but it's already illegal, and the CFTC has tools to address it. Banning markets to stop a few bad actors punishes the rest of us who want to participate in a legal, regulated space. This ties directly to Questions 29-32 on inside information, and I encourage the CFTC to focus on enforcement rather than broad restrictions.
I'm just a regular person from Texas who believes in the freedom to participate in these markets. They give me a way to engage with events that affect my life and make smarter decisions. I ask the CFTC to support well-regulated prediction markets and avoid bans or overly tight rules that would limit access or drive activity overseas. Thank you for considering my perspective.
Sincerely,
Sharon Cheng
