Comment Text:
Dear Chairman and Commissioners,
My name is Tyler Neal, and I'm just a regular guy from Oklahoma who wants to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. Im not a lawyer or a finance expert, just someone who actively trades on platforms like Kalshi and believes these markets are valuable and worth regulating properly.
I support well-regulated prediction markets because they provide information you can't find anywhere else. I've seen firsthand how the prices on Kalshi often predict outcomes better than polls or TV pundits. Thats not just useful for traders like me, its good for everyone who wants to understand whats really likely to happen, whether its an election or an economic event. Plus, I like that these markets let everyday people like me participate. If only big institutions could trade, theyd hoard all the insights. Opening it up feels fairer and honestly makes the predictions sharper.
I also want to push back on the idea that event contracts are gambling. Trading on prediction markets isnt like pulling a slot machine lever. It takes research and judgment, just like investing in stocks. Ive used these markets to hedge personal risks, like how an election might affect my taxes or local business rules. Thats real economic purpose, not a game. I think the CFTC should see this distinction clearly when considering questions 15 to 22 about defining gaming versus legitimate markets.
Im worried about over-restricting or banning these markets, as discussed in questions 7 to 14 on balancing innovation and public interest. If the rules get too tight, people like me will just turn to unregulated offshore platforms, which are way less safe. Id much rather trade on a CFTC-regulated site like Kalshi, where theres oversight. Banning or over-regulating pushes activity to risky places, and I dont think thats the goal. The U.S. should be leading the way in financial innovation, not handing the advantage to other countries.
On the topic of insider trading from questions 29 to 32, I believe informed traders actually help make prices more accurate, which benefits everyone. Bad actors should be dealt with using existing laws on manipulation and insider trading, not by shutting down entire markets. Targeted rules make more sense than broad bans, and I hope the CFTC focuses on proportionate regulation, as touched on in questions 33 to 40 about costs and benefits.
Im asking you to support fair, balanced rules for prediction markets. Dont ban or over-restrict them. Let regular folks like me keep participating in a safe, regulated space. Thanks for considering my input.
Sincerely,
Tyler Neal
