Comment Text:
Dear Chairman and Commissioners,
My name is Luis Reyes, and I'm a journalist based in California. I've spent much of my career reporting on financial trends, public policy, and how they impact everyday people. I'm writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I strongly support the proportionate regulation of prediction markets, and I want to share why I believe they are valuable and why the CFTC should focus on regulating them properly rather than restricting access.
I've used prediction markets a few times myself, mostly to get a sense of how certain political or economic events might play out. As a journalist, I find the aggregated information these markets provide to be incredibly useful. It's not just about placing a bet; it's about seeing what thousands of people, putting their own money on the line, think will happen. That kind of insight often cuts through the noise of opinion polls or pundit hot takes. I believe this benefits not just me, but the public at large, including the readers I write for who rely on accurate information to make sense of the world.
What I care about most here is the freedom to participate in legal, regulated markets. Prediction markets aren't some Wild West scheme when they're overseen by entities like the CFTC. Platforms like Kalshi, which operate as registered Designated Contract Markets, provide transparency and accountability that you simply don't get with unregulated offshore platforms. If the CFTC over-restricts or bans these markets, I worry that activity will just shift to less safe, less transparent venues where consumers have no protections. I've reported on enough financial scams to know that pushing legitimate activity underground never ends well for regular people. Regulation, not prohibition, is the way to keep participants safe.
I'd like to address a couple of specific questions from the ANPR. On Question 7, regarding balancing innovation and consumer protection, I believe regulated prediction markets strike that balance by fostering innovation in price discovery while offering oversight to prevent abuse. On Question 23, about when public interest determinations should occur, I think the CFTC should prioritize clear upfront rules for platforms like Kalshi so participants know what to expect, rather than making ad hoc decisions that create uncertainty.
I acknowledge concerns about potential manipulation or insider trading in these markets. But the CFTC already has tools to address those issues in other derivatives markets. Use those same tools here. Don't punish everyone by shutting down access because of a few bad actors. I'm asking the CFTC to support well-regulated prediction markets with targeted rules that address specific risks, not broad restrictions that limit participation or push activity offshore. Let's keep these markets safe, accessible, and innovative for people like me who value their unique insights.
Thank you for considering my input.
Sincerely,
Luis Reyes
