Comment Text:
Dear Chairman and Commissioners,
My name is Bennett Stein, and I'm a trader and investor from the United States. I also run a YouTube channel called Bitcoin Trading Challenge, where I share insights on trading and markets with my audience. I'm writing to express my strong support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). As an active trader on platforms like Kalshi, I've seen firsthand the value these markets provide, and I urge the CFTC to adopt proportionate regulations rather than overly restrictive bans.
Prediction markets are a powerful tool for generating information that you just can't find elsewhere. I've noticed time and again that their forecasts are often more accurate than polls or pundit opinions. This isn't just helpful for traders like me; it benefits the public, policymakers, and businesses by offering clearer signals on everything from election outcomes to economic trends. On my channel, I often discuss how price discovery in these markets helps everyone make better decisions. I also use Kalshi to hedge real risks that impact my financial planning, like inflation data or policy changes. This isn't gambling. It's a legitimate way to manage uncertainty, much like trading stocks or commodities.
I'm particularly concerned about the idea of classifying event contracts as gaming. These contracts serve real economic purposes, whether it's hedging or aggregating information. Calling them gaming feels like a misstep when they require research and judgment, just like any other investment. I also worry about over-restricting or banning these markets. If that happens, activity will just move to unregulated offshore platforms, which are far less safe than a regulated exchange like Kalshi. The U.S. should be leading in financial innovation, not pushing it overseas.
Addressing some of your specific questions, like those in Topic B on public interest (Questions 7-14), I believe the CFTC should prioritize balancing innovation with consumer protection by using the robust tools it already has to combat manipulation and insider trading. There's no need for broad bans when targeted rules can address specific risks. On Topic E (Questions 29-32) regarding inside information, I think informed trading actually improves price discovery and benefits all participants by making markets more accurate. Existing laws already prohibit federal employees from abusing nonpublic information, so the focus should be on enforcement, not shutting down entire markets.
I've found freedom to participate in legal, regulated prediction markets incredibly valuable, both as a trader and as someone educating others through my channel. Please support proportionate regulation that allows these markets to thrive while addressing legitimate concerns with focused rules. Don't ban or over-restrict a tool that provides so much benefit to individuals and society.
Thank you for considering my input.
Sincerely,
Bennett Stein
