Comment Text:
Dear Chairman and Commissioners,
My name is Carter Cornelius, and I'm a trader and investor based in Louisiana. I've been actively trading on prediction markets like Kalshi for a while now, and Im writing to express my strong support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these markets provide real value to people like me, and I hope the CFTC will regulate them in a way that allows them to thrive without over-restricting access.
As someone who trades regularly, I can tell you that prediction markets aren't gambling. They're a tool for understanding the world and making informed decisions. When I trade event contracts on Kalshi, I'm not just tossing a coin or playing a game. I'm researching data, reading news, and weighing probabilities about real-world outcomes, whether it's an election result or an economic indicator. This is no different from the skills I use to trade stocks or commodities. These contracts serve a genuine economic purpose, like helping me hedge against uncertainty that could impact my investments or personal finances. I think the CFTC should recognize this distinction, especially when considering questions 15 to 22 about defining "gaming" versus legitimate markets.
I also want to stress how important it is to have regulated platforms like Kalshi. I've seen what unregulated, offshore prediction markets look like. They're risky, opaque, and often leave traders with no recourse if something goes wrong. A regulated market under CFTC oversight means transparency, accountability, and protection for people like me. If the CFTC clamps down too hard or bans certain event contracts, I worry itll push activity to these unsafe, offshore platforms. Thats not a solution; its a step backward. This ties directly to questions 7 to 14 on balancing innovation with consumer protection. Regulation should keep us safe, not drive us to shadier corners of the internet.
I know there are concerns about things like insider trading or manipulation, and I get it. Those are real risks. But the CFTC already has laws and tools to tackle bad actors in other markets, and those can work here too. Shutting down or over-restricting prediction markets to stop a few cheaters feels like punishing everyone for the actions of a few. Lets focus on enforcing existing rules instead of broad bans.
Prediction markets give regular folks like me a chance to access information and hedge risks in ways that big institutions have always been able to do. They democratize that access, and I think thats worth protecting. I urge the CFTC to craft proportionate regulations that address specific risks without stifling these markets or pushing traders offshore. Thank you for considering my perspective.
Sincerely,
Carter Cornelius
