Comment Text:
Dear Chairman and Commissioners,
My name is Ihor Demchenko, and I'm a small business owner based in Florida. Im writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. Ive used prediction markets like Kalshi a few times, mostly as a way to make some side income, but also to protect my business from certain financial risks. I strongly support well-regulated prediction markets, and I hope the CFTC will create rules that allow them to thrive without over-restricting access for people like me.
Running a small business means Im always dealing with uncertainty, whether its changes in regulations, tax policies, or economic shifts that hit my bottom line. Ive found prediction markets to be a unique tool for hedging some of those risks. For instance, Ive placed trades on Kalshi tied to economic indicators that could affect my costs or customer demand. Its not a huge part of my income, but it helps me feel a bit more in control when so much feels out of my hands. Beyond that, the information these markets provide is something I cant get from news or polls. The prices often seem to cut through the noise and give a clearer picture of what might happen.
I understand there are concerns about things like insider trading or manipulation. I get that. No one wants a market where a few bad actors can game the system. But I dont think the answer is banning or overly restricting prediction markets. The CFTC already has laws and tools to go after manipulation and insider trading in other markets. Why not use those same tools here? Shutting down or heavily limiting these platforms would just push people to unregulated offshore sites, which are way riskier. Ive stuck with Kalshi because its regulated and feels safer. If that option goes away, I worry about where traders like me would end up.
Id like to address a couple of specific questions from the ANPR. On Question 7, about balancing innovation and consumer protection, I think regulated markets like Kalshi already strike a good balance by giving people access while having oversight in place. And on Question 29, regarding inside information, I believe the focus should be on enforcing existing laws against misuse of nonpublic info, not restricting the whole market because of a few potential bad actors.
Im just a business owner trying to navigate an unpredictable world, and prediction markets have been a small but real help. I urge the CFTC to support proportionate regulation that keeps these markets accessible and safe, without broad bans or excessive limits. Thank you for considering my perspective.
Sincerely,
Ihor Demchenko
