Comment Text:
Dear Chairman and Commissioners,
My name is Kriston Bowling, and I'm a student from Alabama with a strong interest in economics and public policy. I'm writing to express my support for the proportionate regulation of prediction markets as outlined in the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). As someone who actively trades on platforms like Kalshi and Polymarket, I've seen firsthand how these markets provide unique value, and I believe the CFTC has an opportunity to foster innovation while protecting consumers.
Prediction markets aren't just a hobby for me; they're a tool for understanding the world. I've used them to follow election outcomes, economic indicators, and even weather events, and I've found their forecasts to be consistently more accurate than polls or pundits. This isn't gambling, despite what some might claim. It takes research and critical thinking to trade effectively, much like investing in stocks. These markets serve a real economic purpose by aggregating information and producing data that benefits everyone, not just traders. For students like me, and for the broader public, this kind of transparent price discovery is invaluable for making sense of complex events.
I also want to stress that regulated markets are far safer than the alternatives. Platforms like Kalshi, operating under CFTC oversight, provide accountability and consumer protections that offshore, unregulated sites simply don't. If the CFTC over-restricts or bans these markets, it risks pushing activity to less safe venues where theres no oversight at all. I believe the U.S. should lead in financial innovation, not cede ground to other countries by driving this industry underground.
Addressing some of the specific questions in the ANPR, Id like to touch on Questions 7 and 8 under Public Interest. I believe prediction markets do serve the public good by improving decision-making through better information. They balance innovation with the need for oversight when regulated properly. On Questions 29 and 30 under Inside Information, I think informed trading actually enhances price discovery and benefits all participants. The CFTC already has robust tools to combat manipulation and insider trading in other derivatives markets, and those can be adapted here without broad prohibitions.
I'm not blind to the risks. There are concerns about manipulation or misuse, but banning entire categories of contracts or over-regulating punishes legitimate users like me. The answer is targeted rules, not heavy-handed restrictions. I urge the CFTC to support well-regulated prediction markets that allow for innovation, protect consumers, and keep the U.S. at the forefront of financial technology.
Thank you for considering my perspective.
Sincerely,
Kriston Bowling
