Comment Text:
Dear Chairman and Commissioners,
My name is Isaac Jacobs, and I'm a trader and investor based in New Jersey. I've been actively trading on prediction markets like Kalshi and Polymarket for a while now, and I'm writing to support the proportionate regulation of these markets in response to your Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these platforms offer unique value to people like me and to society as a whole, and I want to share my perspective on why they should be regulated sensibly, not restricted or banned.
As a trader, I rely on prediction markets for insights that I just can't get from polls or pundits. I've seen firsthand how these markets often predict outcomes, like elections or economic data releases, with way more accuracy than traditional forecasts. That information isn't just helpful for my trades; its valuable for anyone trying to make sense of an uncertain world. I also use these markets to hedge personal financial risks. For instance, I've traded contracts tied to interest rate decisions to protect against changes that could impact my investments or loans. This isn't gambling to me. It takes research and real-world judgment, much like trading stocks or commodities.
One of my biggest concerns is access to legal, regulated platforms. I prefer trading on a CFTC-registered market like Kalshi because I know there are safeguards in place. When I use unregulated offshore platforms like Polymarket, Im always worried about whether my funds are safe or if Im exposed to manipulation. Banning or over-restricting prediction markets in the U.S. would push people like me to those less safe venues. Regulation is the answer, not prohibition. It keeps activity under oversight and protects participants.
Id like to address a couple of specific questions from your ANPR. On Question 7, regarding balancing innovation and consumer protection, I think allowing prediction markets with clear rules strikes that balance. They foster innovation by giving regular people access to unique financial tools, while regulation can address risks like fraud. On Question 29, about insider trading, I believe the CFTCs existing tools to combat manipulation and enforce laws against trading on nonpublic information are sufficient. Banning markets because of a few bad actors would punish honest traders like me.
I urge you to support well-regulated prediction markets that allow everyday investors to participate. Don't let over-restriction or broad bans limit our freedom to engage in these legal, useful markets. Thank you for considering my input.
Sincerely,
Isaac Jacobs
