Comment Text:
Dear Chairman and Commissioners,
My name is Quynh Dong, and I'm a software engineer based in Texas. Im writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. Ive used prediction markets a few times, and I strongly support their continued availability under fair and proportionate regulation. I believe they provide unique value, especially for forecasting public events like elections, and I want to see regular folks like me have the freedom to participate in legal, well-regulated platforms.
As someone working in tech, I value tools that aggregate information in innovative ways. Prediction markets do exactly that. Ive found their forecasts on elections and other events to be more reliable than traditional polls or media pundits. This isnt just helpful for traders; its useful for anyone trying to make sense of an uncertain world. Ive personally relied on these platforms to get a clearer picture of political outcomes that could impact my work in tech, like policies on data privacy or innovation funding. Shutting down or over-restricting these markets would mean losing a source of insight that benefits everyone.
I also believe that regulated markets, like Kalshi operating under CFTC oversight, are a much safer option than unregulated offshore platforms. If the U.S. clamps down too hard, people will just turn to less secure, foreign sites with no consumer protections. Thats a worse outcome for everyone. On top of that, the U.S. should be leading the way in financial innovation. Were a hub for tech and progress, and ceding this space to other countries feels like a missed opportunity. I want America to set the standard, not follow behind.
Regarding some of the specific questions in the ANPR, Id like to address a few points. On Questions 7-14 about public interest, I think the CFTC should prioritize innovation alongside consumer protection. Prediction markets arent gambling; theyre a tool for forecasting and hedging. And on Questions 23-28 about procedural aspects, I urge you to avoid broad categorical bans. Instead, focus on targeted rules that tackle specific risks like manipulation or insider trading, which are already illegal under existing laws. Proportionate regulation will keep these markets accessible while addressing legitimate concerns.
I know there are worries about insider trading or market abuse, and those are valid. But banning or overly restricting prediction markets isnt the answer. Punishing the majority for the actions of a few bad actors doesnt make sense. The CFTC already has tools to handle these issues, and I trust you can adapt them here.
In closing, I ask that you support proportionate regulation of prediction markets. Dont ban or over-restrict them. Keep them legal and accessible on regulated platforms so people like me can continue to benefit from their insights. Thank you for considering my perspective.
Sincerely,
Quynh Dong
