Comment Text:
Dear Chairman and Commissioners,
My name is Chris DiMaria, and I'm a business owner from Massachusetts. Im writing to share my support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on platforms like Kalshi, and Ive seen firsthand how these markets provide unique value, both for my business decisions and for society at large.
As someone running a small business, I rely on accurate information to plan ahead, especially when it comes to economic or political events that could impact my costs or customer demand. Prediction markets have consistently given me better forecasts than polls or pundits. Whether its an election outcome that might shift tax policies or a regulatory change that could hit my industry, the prices on these platforms cut through the noise. This isnt just helpful for me; its a public good when better information is out there for everyone to see. Ive also read up on the academic research, like studies by economists such as Justin Wolfers, showing how these markets aggregate information efficiently. That transparency and data-driven approach matter to me.
I also use prediction markets to hedge real risks. For example, Ive placed trades to offset potential losses tied to policy shifts that could affect my supply chain costs. This isnt gambling, its practical risk management, no different from how I might use other financial tools to protect my business. Classifying event contracts as gaming feels completely off base to me. They serve legitimate economic purposes, and I urge the CFTC to recognize that in response to Questions 15-22 on listed activities.
Im also concerned about what happens if these markets get over-restricted or banned. Right now, trading on a regulated platform like Kalshi feels safe. I trust theres oversight. But if the rules get too tight, people like me will get pushed to unregulated offshore platforms with no protections. Thats worse for everyone. Addressing Questions 7-14 on public interest, I believe the CFTC should prioritize regulated innovation over prohibition. The U.S. has a chance to lead in financial innovation here, not cede that ground to other countries.
Lastly, on the topic of informed trading from Questions 29-32, I think its a net positive. When people with good information trade, it makes the prices more accurate, which benefits all of us. Insider trading is already illegal, and the CFTC has tools to enforce that. Banning or limiting these markets to stop a few bad actors punishes the rest of us who are using them responsibly.
I ask the CFTC to support proportionate regulation of prediction markets. Dont ban or over-restrict them. Focus on targeted rules to address specific risks while keeping these valuable tools accessible to businesses and individuals like me.
Sincerely,
Chris DiMaria
