Comment Text:
Dear Chairman and Commissioners,
My name is Walter Fenn, and I'm a trader and investor based in Alabama. I've been involved in various markets for years, and I've used prediction markets a few times to gain insights and manage risks tied to political and economic events. I'm writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I strongly support the idea of well-regulated prediction markets and want to share why I think the CFTC should focus on fair rules instead of heavy restrictions or outright bans.
Prediction markets have been useful to me, even as someone who doesn't trade them every day. They provide information that's hard to find elsewhere, often more accurate than polls or talking heads on TV. I've looked at platforms like Kalshi, which operate under CFTC oversight, and I feel much safer participating there than on some unregulated offshore site. If the CFTC over-restricts or bans these markets, I worry it will push people like me toward less secure options where there's no accountability. Regulated markets are the way to go, and I think the US should be leading the charge in this kind of financial innovation, not handing the advantage to other countries.
I also believe the CFTC already has solid tools to handle issues like manipulation and insider trading. I've seen how these rules work in other markets I trade in, and I trust they can be applied here too. Banning or over-restricting prediction markets to stop a few bad actors feels like punishing everyone for the actions of a few. Plus, when people trade with good information, it actually helps the market. Prices get more accurate, and that benefits everyone, not just traders. I'm all for my freedom to participate in legal, regulated markets, and I don't see why this should be any different.
Looking at some of the specific questions in the ANPR, I want to touch on a couple. For Question 7 under Public Interest, I think innovation and consumer protection can go hand in hand with smart regulation, not heavy-handed bans. And for Question 29 under Inside Information, I believe informed trading helps price discovery and shouldn't be discouraged, as long as it's within the existing legal boundaries.
I hope the CFTC will support proportionate regulation that keeps prediction markets accessible and safe for participants like me. Let's not push this activity offshore or stifle a valuable tool for information and risk management. Thank you for considering my input.
Sincerely,
Walter Fenn
