Comment Text:
Dear Chairman and Commissioners,
My name is Romeo Medina, and I'm an everyday citizen from Washington state. I'm writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on platforms like Kalshi, and I strongly support the idea of well-regulated prediction markets. I believe they offer real value to people like me, and I hope the CFTC will create rules that allow these markets to thrive without over-restricting them.
I've found prediction markets to be incredibly useful. Unlike polls or pundits, the prices on these platforms often give a clearer, more accurate picture of what's likely to happen in elections or other big public events. I rely on this information to make better personal decisions, and I know others do too. It's not just about trading; it's about having access to insights that aren't available anywhere else. I also use these markets to hedge against financial risks that affect my life, like policy changes or economic shifts. For me, this isn't gambling. It's a practical tool, much like investing in stocks after doing your homework.
I'm especially concerned about the idea of banning or overly restricting these markets. I've seen how regulated platforms like Kalshi operate with transparency and oversight, which makes me feel safe participating. If the CFTC clamps down too hard, I worry that activity will just move to unregulated offshore platforms where there are no protections at all. That would be worse for everyone. The US has a chance to lead in financial innovation here, and I think we should take it. We shouldn't hand that opportunity to other countries by making it too hard for these markets to exist here.
I also want to address a point from your questions, specifically Question 29 about inside information. I believe informed trading actually helps make prices more accurate, which benefits all of us in the market. Of course, illegal insider trading should be punished, but the CFTC already has tools to handle that. Shutting down entire markets to stop a few bad actors doesn't seem fair or necessary.
I urge you to support proportionate regulation that lets everyday people like me continue participating in legal, regulated prediction markets. Please don't ban or over-restrict them. Let's keep this innovative tool accessible while ensuring the right safeguards are in place.
Thank you for considering my input.
Sincerely,
Romeo Medina
