Comment Text:
Dear Chairman and Commissioners,
My name is Joseph Morales, and I'm an everyday citizen from Arizona. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, published in the Federal Register as 91 FR 12516. I've been actively trading on regulated prediction markets like Kalshi for a while now, and I want to share why I strongly support well-regulated markets and why I think the CFTC should focus on proportionate rules rather than heavy restrictions or bans.
As someone who isn't a big investor or part of some financial elite, I value the chance to participate in prediction markets. These platforms give me access to information and insights I can't get from news or polls. I've used Kalshi to make small trades on things like election outcomes or economic data releases, and it helps me feel more connected to what's happening in the world. It's not gambling to me. It takes real thought, research, and judgment, just like any other kind of investing. Plus, the ability to hedge against events that could affect my finances, like policy changes or inflation numbers, is a practical tool for someone like me who doesn't have a big safety net.
What really matters to me is the freedom to participate in legal, regulated markets. I trust platforms like Kalshi because they're under CFTC oversight. I know there are rules in place to protect users and prevent manipulation. I've heard about unregulated offshore platforms, and I wouldn't touch them. They're risky, and there's no accountability. If the CFTC cracks down too hard or bans prediction markets, people like me won't just stop trading. We'll get pushed to those unsafe, shadowy sites instead. That doesn't protect anyone. It makes things worse.
I want to address a couple of specific questions from the ANPR. On Question 7, about balancing innovation and consumer protection, I think regulated markets already strike that balance. Kalshi has clear rules and transparency, and that's far better than the alternative. On Question 23, about when public interest determinations should happen, I believe the CFTC should focus on setting broad, fair guidelines upfront rather than blocking entire categories of contracts. Don't punish everyone for the actions of a few bad actors.
I also want to touch on concerns like insider trading or manipulation. I get why that's a worry, but those things are already illegal. The CFTC has the power to go after cheaters without shutting down the whole market. Banning prediction markets to stop a small number of bad actors would be like closing the stock market over a few insider trades. It doesn't make sense.
I'm asking the CFTC to support proportionate regulation of prediction markets. Keep platforms like Kalshi safe and accessible for regular people like me. Don't over-restrict or ban them, because that will just drive activity to dangerous, unregulated spaces. Thank you for considering my perspective.
Sincerely,
Joseph Morales
