Comment Text:
Dear Chairman and Commissioners,
My name is Cello Taylor, and I'm a student from Alabama. I'm writing 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 I want to share why I believe the CFTC should support well-regulated prediction markets rather than overly restricting or banning them.
As a student, I'm always looking for ways to understand the world better, and prediction markets have been an incredible tool for that. Trading on these platforms isn't just a hobby; it's a way to engage with real-world events and learn how to analyze information critically. Ive placed trades on election outcomes and economic indicators, and its taught me to dig into data and think about probabilities in a way no textbook ever could. More importantly, the prices on these markets often reveal insights you can't find in news articles or polls. They're a unique source of information that benefits everyone, not just traders like me.
I also see prediction markets as a way to hedge personal financial risks. For example, Ive used them to offset potential impacts of policy changes that could affect my student loans or future job prospects. If a certain election result might lead to changes in education funding, trading on that outcome helps me manage uncertainty. This isn't gambling; it's a practical tool, much like any other investment strategy. I worry that calling these markets "gaming" or restricting them would unfairly cut off regular people like me from participating. Freedom to engage in legal, regulated markets is important, and I believe democratizing access makes the information in these markets stronger and more accurate.
I know there are concerns about insider trading or manipulation, and I get that those are real issues. But the CFTC already has laws and tools to address bad actors. Insider trading is illegal, and market manipulation can be prosecuted. Shutting down or over-restricting prediction markets to stop a few cheaters punishes honest participants like me. Instead, I think the focus should be on enforcing existing rules. On the topic of informed trading, which I see in Questions 29-32 of the ANPR, I strongly believe it improves price discovery. When people with good information trade, it makes the market's predictions more accurate, and that benefits everyone, from casual traders to policymakers who might use this data.
I'm asking the CFTC to support proportionate regulation of prediction markets. Please don't ban or overly limit them. Focus on targeted rules to handle specific risks while letting regular people continue to participate in these valuable, innovative markets. Thank you for considering my perspective.
Sincerely,
Cello Taylor
