Comment Text:
Dear Chairman and Commissioners,
My name is Gabriel Jimenez, and I'm just an everyday citizen from North Carolina 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 feel strongly that these markets are valuable and should be supported with fair regulation, not heavy-handed restrictions.
I believe in the freedom to participate in legal, regulated markets. Prediction markets aren't just a hobby for me; theyre a way to engage with the world around me, to put my research and judgment to the test on real-world events. Ive traded on outcomes like elections and economic indicators, and the prices I see on platforms like Kalshi often tell me things I can't find in news articles or polls. That information isn't just helpful for traders like me; it's useful for everyone, from journalists to regular folks trying to understand what's likely to happen next.
What worries me is the idea that these markets could be classified as gaming or gambling. I don't see it that way at all. When I trade on Kalshi, I'm not rolling dice or pulling a slot machine lever. I'm analyzing data, reading up on issues, and making informed decisions, just like I would with any investment. These event contracts serve a real economic purpose, whether it's hedging against uncertainty or contributing to price discovery. Plus, having regulated platforms like Kalshi in the US is far safer than pushing people toward shady offshore sites with no oversight. If you over-restrict or ban these markets, that's where activity will go, and that's not good for anyone.
I also think the US should be a leader in financial innovation. We shouldn't let other countries take the lead on something this promising. Prediction markets can be a powerful tool, especially when informed traders participate. Their knowledge improves the accuracy of prices, which benefits all of us, not just those trading. Im particularly drawn to Questions 29 and 30 from your notice, about whether informed traders help with price discovery. I believe they absolutely do, and we shouldn't punish the whole market just to stop a few bad actors. The CFTC already has tools to tackle insider trading and manipulation; use those instead of broad bans.
I'm asking you to support proportionate regulation for prediction markets. Don't shut them down or over-restrict them. Let regular people like me continue to participate in these legal, regulated spaces where we can contribute to and benefit from better information about the world.
Thank you for considering my input.
Sincerely,
Gabriel Jimenez
