Comment Text:
Dear Chairman and Commissioners,
My name is Chris Lepore, and Im a finance professional from North Carolina. Im writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on platforms like Kalshi and Polymarket, and I strongly support the development of well-regulated prediction markets in the United States. I believe they provide unique value to people like me, as well as to society at large, and I hope the CFTC will craft rules that encourage their growth while addressing real risks in a targeted way.
As someone working in finance, I rely on accurate information to make decisions, and prediction markets consistently deliver forecasts that outshine polls or pundits. Whether its an election outcome or a major public event, the aggregated wisdom of these markets often cuts through noise and bias. This isnt just helpful for traders like me, its valuable for anyone who needs reliable signals about the future, from policymakers to everyday citizens. Beyond forecasting, I personally use BTC futures on Kalshi to hedge my market risk and protect my Bitcoin positions. This kind of hedging isnt gambling, its a practical tool to manage real financial exposure, much like how businesses hedge commodity prices or interest rates.
Im also convinced that regulated markets like Kalshi are far safer than unregulated offshore platforms. If the CFTC over-restricts or bans certain event contracts, activity wont stop, itll just move to less transparent venues where theres no oversight. Thats worse for everyone. Id rather see the U.S. lead in this space with clear, fair rules that keep markets safe and accessible. For instance, addressing insider trading or manipulation doesnt require shutting down entire categories of contracts. Those issues are already illegal, and the CFTC has tools to enforce against bad actors. Broad bans punish legitimate users like me instead of solving the problem.
Id like to touch on a couple of specific questions from the ANPR. On Question 7, regarding public interest, I believe prediction markets serve the public by democratizing access to information and hedging tools, balancing innovation with consumer needs when properly regulated. On Question 29, about inside information, I think informed trading often improves price discovery. The more knowledge in the market, the better the prices reflect reality, which benefits all participants, not just traders.
I urge the CFTC to adopt proportionate, targeted regulations for prediction markets. Focus on specific risks with tailored rules rather than broad restrictions that could stifle this valuable tool. Lets keep these markets accessible, safe, and innovative right here in the U.S.
Thank you for considering my input.
Sincerely,
Chris Lepore
