Comment Text:
Dear Chairman and Commissioners,
My name is Edwin Perez, and I'm just an everyday citizen from California writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've been actively trading on platforms like Kalshi for a while now, and I believe these markets are valuable. I'm not a financial expert or a lawyer, just someone who sees the benefit of being able to participate in a legal, regulated space like this. I hope my perspective can help as you shape the rules for prediction markets.
I got into trading on Kalshi because I saw it as a way to potentially build wealth, but also because it gives me a chance to engage with real-world events in a meaningful way. I put time into researching and understanding the topics I trade on, whether it's an election outcome or an economic indicator. Honestly, I dream of making a big return one day, but even if that doesn't happen, I value having the freedom to participate in these markets. It's not about gambling for me; it's about having a stake in the information and predictions that affect our lives.
What I really want to stress is that regulated markets like Kalshi are so much safer than the alternatives. If you make it too hard for platforms like this to operate under CFTC oversight, people like me might turn to unregulated offshore sites. Those places have no accountability, no consumer protections, and no way to ensure fair play. I've read horror stories about users losing money to scams on those sites. Keeping prediction markets legal and regulated in the U.S. protects regular folks like me from getting burned. I'd like to reference Question 7 from your ANPR about balancing innovation and consumer protection. I think the answer lies in supporting platforms that follow the rules, not pushing activity into the shadows.
Another point I care about is how informed trading actually helps everyone. When people who know a lot about a topic trade on that knowledge, it makes the market's predictions more accurate. That benefits not just traders, but anyone who looks at the data for insights, whether it's journalists, businesses, or even policymakers. I think Question 29 in your notice, about whether informed traders help price discovery, is spot on. In my view, they absolutely do. Shutting that down would mean less reliable information for all of us.
I'm not blind to the risks. I know some worry about insider trading or manipulation, but aren't those already illegal? The CFTC has tools to catch bad actors without banning entire markets. Please don't punish people like me who just want a fair shot at participating.
I urge you to support proportionate regulation of prediction markets. Keep them legal, keep them safe, and let everyday citizens have access to these tools. Thank you for considering my input.
Sincerely,
Edwin Perez
