Comment Text:
Dear Chairman and Commissioners,
My name is Ty Mauldin, and I'm a healthcare professional from South Dakota. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I want to share my perspective as someone who actively trades on platforms like Kalshi, and I strongly support the proportionate regulation of prediction markets, not bans or overly harsh restrictions.
I've used prediction markets for a while now to supplement my personal finances. It's nothing big, just a few hundred dollars here and there, but it's been a fun and engaging way to participate. Kalshi makes the process simple and straightforward, and I appreciate having a legal, regulated platform to use. I don't see this as gambling at all. It takes research and judgment, just like any other kind of investing. I've put thought into contracts tied to election outcomes or economic indicators, and I value the information these markets provide. Honestly, the forecasts I've seen on prediction markets are often more accurate than what I hear from polls or pundits on TV. That kind of insight is helpful not just to me, but to anyone trying to understand where things are headed, whether it's an election or a major public event.
As someone in healthcare, I also see real hedging potential here. For example, if a policy change tied to an election could impact my work or taxes, having a way to offset that risk financially is useful. It's not much different from how farmers or businesses hedge against uncertainty. I think the CFTC should recognize that event contracts serve legitimate economic purposes, not just entertainment. Classifying them as gaming, as discussed in Questions 15-22 of the ANPR, misses the point of their value.
I'm also worried about what happens if these markets get banned or over-regulated. Platforms like Kalshi are safe and accountable because they're under CFTC oversight. If you push too hard with restrictions, people like me will just turn to unregulated offshore sites, which are riskier for everyone. On that note, I think the US should be leading the way in financial innovation, not letting other countries take the reins. This ties into Questions 7-14 about public interest and innovation versus consumer protection. I believe you can balance both by focusing on targeted rules, not broad prohibitions.
Finally, I know there are concerns about manipulation or insider trading, as raised in Questions 29-32. But the CFTC already has strong tools to handle those issues in other markets. Use those existing powers rather than punishing regular users like me with outright bans. Shutting down prediction markets to stop a few bad actors doesn't make sense.
I urge you to support well-regulated prediction markets that allow everyday people to participate. Keep platforms like Kalshi accessible, and focus on enforcing the rules you already have. Thank you for considering my input.
Sincerely,
Ty Mauldin
