Comment Text:
Dear Chairman and Commissioners,
My name is Mauro Fanelli, and I'm a trader and investor from Connecticut. I rely entirely on cryptocurrency and prediction markets for my income. Losing access to either would devastate my financial situation, and Id be in dire straits. Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516) to urge you to support proportionate regulation of these markets rather than imposing bans or overly restrictive rules.
I actively trade on platforms like Kalshi and Polymarket, and Ive even built my own custom framework to assist with my predictions. These markets arent just a source of income for me; they provide information I cant get anywhere else. Their forecasts are often more accurate than polls or pundits, and that benefits not just traders like me but the public, media, and even policymakers who need reliable data. Beyond that, prediction markets let me hedge real financial risks tied to events like elections or economic policy changes that could impact my livelihood. This isnt gambling. Its a legitimate economic tool, requiring research and judgment, much like trading stocks or commodities. Classifying event contracts as gaming ignores their real purpose.
Im also worried about what happens if these markets are over-restricted or banned. Id be forced to turn to unregulated offshore platforms, which are far less safe than CFTC-registered markets like Kalshi. Regulation keeps consumers like me protected; pushing activity offshore does the opposite. The U.S. should be leading in financial innovation, not ceding ground to other countries. I believe the CFTC already has strong tools to tackle issues like manipulation and insider trading. Use those instead of broad categorical bans that punish honest participants like me. Targeted rules addressing specific risks make more sense. And lets not forget that informed trading actually improves price discovery, helping everyone in the market.
Id like to address a few specific questions from the ANPR. On Question 7 under Public Interest, I strongly believe prediction markets serve the public by providing better information for decision-making. On Question 15 under Listed Activities, I urge you not to label event contracts as gaming when they clearly serve economic purposes like hedging and price discovery. Finally, on Question 29 under Inside Information, I think informed traders enhance market accuracy, and existing laws already cover insider trading risks.
Please support well-regulated prediction markets with balanced, targeted rules. Dont let broad restrictions or bans destroy a valuable tool for people like me and push activity to unsafe offshore venues. Thank you for considering my input.
Sincerely,
Mauro Fanelli
