Comment Text:
Dear Chairman and Commissioners,
My name is Maddox Graves, and I'm a journalist and TikTok creator based in Alabama. Im writing to express my support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). As someone who covers elections and public events for my audience, Ive found prediction markets to be an invaluable tool for staying ahead of the curve, and I believe they deserve thoughtful regulation, not heavy-handed restrictions.
Ive used prediction markets a few times, mostly to track election outcomes. The prices on these platforms often cut through the noise of polls and pundit hot takes, giving me a clearer picture of what might happen. For example, during the last election cycle, I noticed the odds on a specific race shifting weeks before traditional polls caught up. That helped me focus my reporting and content on what was really at stake. This isnt just useful for me; its a public good when better information is out there for everyone, not just traders.
I strongly believe that regulated markets, like Kalshi on a CFTC-registered platform, are the way to go. Theyre transparent and accountable, unlike offshore sites where theres no oversight. Banning or over-restricting these markets would just push activity to those shady platforms, which helps no one. Plus, the US should be leading in financial innovation. If we clamp down too hard, were handing the future of this space to other countries. I want America to set the standard.
I also see real value in how these markets let regular folks like me participate. Freedom to trade in legal, regulated spaces isnt gambling; its a chance to engage with events that impact our lives. And informed trading, even by those with strong insights, makes prices more accurate, which benefits everyone. On top of that, prediction markets arent just for forecasting. They help people and businesses hedge real risks, like a small business owner betting on policy changes that could affect their bottom line.
Looking at some of the specific questions in the ANPR, Id like to address Question 7 on balancing innovation and consumer protection. I think the CFTC can protect consumers by focusing on strong oversight of manipulation and fraud, without stifling the growth of these markets. And regarding Question 29 on inside information, I believe informed traders improve price discovery. The CFTC already has tools to tackle insider trading; use those instead of broad bans.
I urge you to support proportionate regulation of prediction markets. Dont ban or over-restrict them. Lets build a framework that keeps these markets safe and open for people like me to use responsibly.
Sincerely,
Maddox Graves
