Comment Text:
Dear Chairman and Commissioners,
My name is Jayden McKnight, and I'm just a regular citizen from Michigan writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've been actively trading on platforms like Kalshi for a while now, and I strongly support well-regulated prediction markets. I believe they offer real value to people like me and to society as a whole, and I hope the CFTC will regulate them in a fair and balanced way.
I started trading on prediction markets because I wanted a better way to understand and prepare for big events, like elections or economic changes. The forecasts on these platforms are often more accurate than anything I see from polls or TV pundits. That information isn't just helpful for traders; its useful for everyone who wants to know whats likely to happen. Beyond that, these markets let me hedge real risks. For instance, Ive placed trades to offset potential impacts of election outcomes on my taxes or costs as a consumer. This isnt gambling. It takes research and judgment, much like investing in stocks. Labeling it as "gaming" feels wrong when it serves a clear economic purpose.
I also worry that over-restricting these markets will push activity to unregulated offshore platforms. I trade on Kalshi because its regulated and safer. If the CFTC clamps down too hard, people like me might lose access to transparent, legal markets, and thats a step backward. Plus, I believe the U.S. should be a leader in financial innovation. We shouldnt let other countries take the lead on something this promising. Allowing informed trading on these platforms also improves price discovery, which benefits everyone by making the data more reliable.
Id like to address a couple of specific questions from the ANPR. On Question 7, regarding public interest, I think prediction markets clearly serve the public by providing unique insights and hedging tools. On Question 29, about inside information, I believe informed traders actually help make prices more accurate, as long as existing laws against insider trading are enforced. The CFTC already has tools to tackle manipulation and bad actors. Theres no need to ban or over-restrict entire markets to solve problems that can be handled with targeted rules.
Im asking the CFTC to support proportionate regulation of prediction markets. Please dont impose broad bans or restrictions that would limit access for regular people like me or stifle innovation. Focus on enforcing the rules already in place to keep these markets fair and safe. Thank you for considering my perspective.
Sincerely,
Jayden McKnight
