Comment Text:
Dear Chairman and Commissioners,
My name is Darren Kramer, and I'm a healthcare professional from Wisconsin. 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 CFTC crafting fair, proportionate regulations for prediction markets rather than imposing broad bans or overly restrictive rules.
As someone working in healthcare, I deal with a lot of uncertainty, both in my profession and in my personal finances. Prediction markets have become a valuable tool for me to hedge risks that affect my life and work. For instance, I've used Kalshi to trade contracts tied to economic indicators that influence healthcare costs and insurance premiums, which directly impact my budget and planning. This isn't gambling, it's a practical way to manage real-world risks, much like any other investment strategy. I value the freedom to participate in these legal, regulated markets, and I believe they provide unique insights that benefit not just me, but society as a whole through better price discovery.
I'm particularly concerned about the idea of banning or over-restricting these markets. I've seen what happens when access is limited. People don't just stop trading, they turn to unregulated offshore platforms that lack oversight and consumer protections. A regulated market like Kalshi is far safer, with clear rules and accountability. Pushing activity offshore by over-regulating here would be a step backward, and it would hurt regular folks like me who rely on these tools. On top of that, the U.S. should be leading the way in financial innovation. If we clamp down too hard, we're just handing the advantage to other countries who will step in and build these markets instead.
I appreciate that the CFTC is asking for input on balancing innovation with consumer protection, as raised in questions 7 through 14 in the ANPR. I urge you to focus on proportionate, targeted regulations rather than broad categorical bans. Address specific risks like manipulation or insider trading with focused rules, not by shutting down entire markets. Questions 23 through 28 about procedural aspects also resonate with me. I believe public interest determinations should be made on a case-by-case basis, ensuring legitimate markets aren't unfairly restricted.
I understand there are concerns about misuse, but the CFTC already has tools to tackle fraud and manipulation. Use those existing powers instead of punishing everyone with blanket restrictions. I'm asking you to support well-regulated prediction markets that allow everyday people like me to participate safely and benefit from this innovative tool. Let's keep the U.S. at the forefront of financial progress.
Thank you for considering my input.
Sincerely,
Darren Kramer
