Comment Text:
Dear Chairman and Commissioners,
My name is Brett Tinling, and I'm a software engineer from Washington state writing to share my support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I've been actively trading on platforms like Kalshi for a while now, and I believe these markets provide real value, both to society and to individuals like me who are interested in data-driven forecasting and tech innovation.
As someone in the tech field, I see prediction markets as a unique sandbox for experimentation. I've used them to develop and test small-scale algorithmic trading strategies, which has been a fantastic way to learn and grow my skills without needing the massive capital or infrastructure required for traditional financial markets. Beyond my personal interest, though, I think these markets offer something bigger. They aggregate scattered information into clear, real-time signals that are often more accurate than polls or expert opinions. That kind of insight can help policymakers, businesses, and everyday people make better decisions. It's hard to overstate how useful that is in a world full of uncertainty.
I also want to stress a few key points that matter to me. First, the US should be leading the way in financial innovation, not falling behind other countries. If we over-restrict prediction markets, we're just pushing activity to unregulated offshore platforms, which helps no one. Second, informed trading isn't a problem; its a feature. When people bring knowledge to the table, it improves price discovery for everyone, not just traders. And third, these event contracts aren't gambling. They serve real economic purposes, like hedging against political or economic risks, and require research and judgment, much like any other investment.
I appreciate that the CFTC is asking for input on balancing innovation with consumer protection, as outlined in questions 7 through 14 under the Public Interest section. I strongly support regulation that protects participants but urge you to focus on targeted, proportionate rules rather than broad bans. Questions 15 to 22 on defining legitimate markets versus gaming also hit home for me; I believe the economic utility of these contracts sets them apart from gambling and deserves recognition. Regulation under a registered DCM, like Kalshi, is far safer than driving activity to sketchy offshore sites.
Im also glad to see the CFTC addressing insider trading concerns in questions 29 to 32. I agree there are risks, but existing laws already prohibit federal employees and others from trading on nonpublic information. Enforce those rules instead of punishing everyone by restricting access to these markets.
In closing, I ask the CFTC to support well-regulated prediction markets with fair, focused rules that encourage innovation and protect consumers without stifling participation. Lets keep the US at the forefront of financial technology.
Sincerely,
Brett Tinling
