Comment Text:
Dear Chairman and Commissioners,
My name is Luis Maisonet, and I'm an Account executive in Tech based in Georgia. I work in tech, so I'm always looking at how innovation can solve real-world problems, and that's why I'm writing to you about the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I've used prediction markets a few times myself, and I strongly support regulating them in a way that lets regular people like me participate while keeping things safe and fair.
I believe prediction markets are a powerful tool. They've consistently shown they can forecast outcomes, like elections or economic shifts, better than polls or pundits. As someone who values data, I see these markets as a unique source of information that benefits everyone, not just traders. Beyond that, they offer a way for individuals and businesses to hedge against uncertainty. For example, Ive thought about how a small tech startup could use these markets to manage risks tied to policy changes or interest rate decisions. This isn't gambling. It takes research and judgment, just like any other investment, and I think calling event contracts "gaming" misses their real economic purpose.
I'm also worried about what happens if we over-restrict these markets. Regulated platforms like Kalshi, under CFTC oversight, are far safer than unregulated offshore alternatives. If we push this activity out of the US by banning or overly limiting prediction markets, people will just go to less secure sites, and thats worse for consumer protection. I want the freedom to participate in legal, regulated markets here at home. Plus, as a tech professional, I believe the US should be leading the way in financial innovation. We shouldnt cede this space to other countries when we have the chance to set the standard.
Id like to address a couple of specific questions from the ANPR. On Question 7, about balancing innovation and consumer protection, I think regulation should focus on transparency and anti-manipulation measures rather than broad restrictions. And on Question 15, regarding defining "gaming," I urge you to recognize that event contracts serve legitimate purposes like hedging and price discovery, distinct from gambling.
I understand there are concerns about insider trading or manipulation, but those issues are already illegal under existing laws, and the CFTC has tools to enforce them. Banning or over-restricting prediction markets punishes honest participants like me instead of targeting bad actors. I ask that you support proportionate regulation that allows these markets to thrive while addressing specific risks with focused rules.
Thank you for considering my input.
Sincerely,
Luis Maisonet
