Comment Text:
Dear Chairman and Commissioners,
My name is Iazes McGaughy, and I'm a trader and investor based in California. I've been actively trading on prediction markets like Kalshi for a while now, and Im writing to express my strong support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these markets provide real value to people like me and to society as a whole, and I urge the CFTC to create a fair regulatory framework rather than imposing heavy restrictions or outright bans.
As someone who trades regularly, I can tell you that event contracts on prediction markets aren't gambling. They're serious tools for understanding the world and managing risk. When I trade on Kalshi, I'm not just throwing money at random outcomes. I'm doing research, reading up on economic trends, and making informed decisions about events that impact my life and investments. Whether it's a Federal Reserve decision that could affect my portfolio or an election outcome that might shift tax policies, these markets let me hedge real risks. That's not a game; it's a practical way to protect myself financially.
One thing that really worries me is the idea of pushing these markets underground. Regulated platforms like Kalshi, which operate under CFTC oversight, are safe and transparent. I've got confidence in their systems, and I know there's accountability if something goes wrong. But if the CFTC over-regulates or bans these markets, people like me won't just stop trading. We'll get pushed to unregulated offshore platforms where there's no oversight, no consumer protection, and way more risk of fraud or manipulation. I'd much rather trade on a U.S.-based, regulated market than take my chances with some sketchy foreign site.
I also want to touch on a couple of specific questions from the ANPR. Regarding Question 15 on defining gaming versus legitimate markets, I strongly believe event contracts serve economic purposes like price discovery and hedging, not entertainment. They're no more "gaming" than trading futures on corn or oil. And on Question 7 about balancing innovation and consumer protection, I think the CFTC can protect consumers by focusing on strong oversight of regulated markets, not by shutting them down and driving activity offshore.
I get that there are concerns about insider trading or manipulation, but those issues are already illegal under existing laws. The CFTC has the tools to go after bad actors without punishing the rest of us who use these markets responsibly. Banning or over-restricting prediction markets would be like closing the stock market because of a few insider trading cases. It doesn't make sense.
In closing, I ask the CFTC to support proportionate regulation that allows prediction markets to thrive under clear, fair rules. These markets are valuable for everyday traders like me, and regulated platforms are the safest way to keep them accessible. Please dont let heavy-handed restrictions drive this activity into the shadows.
Sincerely,
Iazes McGaughy
