Comment Text:
Dear Chairman and Commissioners,
My name is Dwayne Thompson, and I'm a trader and investor from Indiana. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I'm relatively new to prediction markets, but I strongly support their existence and want to see them regulated in a fair and balanced way. As someone who participates in financial markets, I value the freedom to engage in legal, regulated platforms, and I believe prediction markets offer unique benefits that shouldn't be stifled by overly restrictive rules.
Ive spent years trading and investing in traditional markets, learning to analyze data and make informed decisions. When I discovered prediction markets, I saw them as another tool to understand the world around me. They provide insights you can't get from polls or news outlets, aggregating real-time information into prices that often predict outcomes better than so-called experts. I think this benefits everyone, not just traders like me. Its not gambling; its about research and judgment, just like trading stocks or commodities.
What concerns me most is the idea of pushing these markets underground by over-regulating or banning them. Ive looked into platforms like Kalshi, which operates under CFTC oversight as a registered Designated Contract Market. That kind of regulation gives me confidence as a trader. I know there are safeguards against manipulation and fraud, and my participation is legal and transparent. Compare that to unregulated offshore platforms where theres no oversight, no accountability, and no protection for participants. If the CFTC clamps down too hard, people like me will be driven to those unsafe venues. I dont want that, and Im sure you dont either.
Id like to address a couple of specific questions from your ANPR. On Question 7, regarding balancing innovation and consumer protection, I believe regulated markets like Kalshi strike the right balance. They allow innovation while ensuring oversight. On Question 29, about inside information, I think the CFTCs existing tools to combat insider trading and manipulation are sufficient. Banning entire markets to stop a few bad actors punishes honest participants like me. Use the laws already in place instead of broad restrictions.
Im not naive about the risks. I know some might try to game the system. But the answer isnt to shut down prediction markets. Its to enforce the rules you already have and keep these markets legal and transparent. I urge the CFTC to support proportionate regulation that allows everyday traders like me to participate in safe, regulated environments without driving activity to offshore platforms.
Thank you for considering my perspective. I hope youll craft rules that protect consumers while preserving our freedom to engage in these valuable markets.
Sincerely,
Dwayne Thompson
