Comment Text:
Dear Chairman and Commissioners,
My name is Derreck Rumsey, and I'm just a regular guy from Idaho who wants to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). Im not a Wall Street trader or a policy expert, just someone whos been using platforms like Kalshi to trade event contracts. I believe these markets are valuable, and Im asking you to support fair, proportionate regulation instead of heavy restrictions or outright bans.
I started trading on prediction markets because they give me information I cant find anywhere else. Whether its an election outcome or an economic indicator like a CPI report, the prices on these platforms often cut through the noise of pundits and polls. Thats not just useful for me, its helpful for anyone trying to make sense of the world, from small business owners to everyday folks planning their finances. I also see this as a way to have a stake in understanding public events. It pushes me to read up and think harder about whats happening around me.
What bothers me is the idea that these markets could be labeled as gambling. I put real thought and research into my trades, just like I would with stocks or other investments. Calling this gaming feels wrong when its about real-world events and serves a purpose, like helping me hedge against uncertainties that affect my budget. For example, trading on inflation or interest rate outcomes helps me think through decisions about loans or savings. Thats not a game, its practical.
Im also worried about what happens if these markets get over-regulated or banned. Id rather trade on a regulated U.S. platform like Kalshi, where there are rules and oversight, than be pushed to some offshore site with no protections. If the CFTC cracks down too hard, thats exactly where activity will go. The U.S. should be leading the way on financial innovation, not handing that over to other countries. I think this ties into your questions 7 and 8 about balancing innovation with consumer protection. Regulation is important, but it needs to keep safe, legal markets accessible to regular people like me.
I know there are concerns about manipulation or insider trading, and I get that. But the CFTC already has tools to handle those issues, as mentioned in questions 1 and 29. Use those powers to target bad actors, dont punish everyone by shutting down or over-restricting these markets. I want consumer protection, but I also want the freedom to participate in a system that works for me.
Please support reasonable regulation of prediction markets that keeps them safe and open to everyday citizens. Dont let heavy-handed rules push this valuable tool out of reach or offshore. Thanks for considering my perspective.
Sincerely,
Derreck Rumsey
