Comment Text:
Dear Chairman and Commissioners,
My name is Trey Call, and I'm a trader and investor based in Washington state. I'm writing to express my strong support for the proportionate regulation of prediction markets as outlined in the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I've been actively trading on platforms like Kalshi for a while now, and I believe these markets provide real value to people like me, as well as to businesses and the broader economy.
As someone who makes a living through trading and investing, I rely on tools that help me manage financial risks. Prediction markets are one of those tools. They allow me to hedge against uncertainties that directly impact my personal finances and investments. For example, Ive used event contracts to offset risks tied to interest rate decisions by the Federal Reserve, which affect my borrowing costs and investment strategies. Without these markets, I'd be left guessing or overexposed to events I can't control. It's not gambling, it's a calculated way to protect myself, much like buying options or futures in other markets.
I also see how prediction markets help businesses hedge real risks. Small business owners, farmers, or anyone with exposure to policy changes or economic shifts can use these contracts to plan better. The information these markets generate is unique, often more accurate than polls or expert opinions. That benefits everyone, not just traders. Shutting down or overly restricting these markets would take away a valuable resource and push activity to unregulated offshore platforms, which seems like a worse outcome.
I want to address a concern I know the CFTC has about insider trading or manipulation, as raised in questions 29 through 32 of the ANPR. I get why this is a worry, but the answer isn't to ban or heavily limit prediction markets. Laws already exist to prevent insider trading by federal employees or anyone with nonpublic information. The CFTC also has tools to tackle market manipulation in other derivatives markets. Use those same powers here. Punishing everyone by restricting access to these markets because of a few bad actors doesn't seem fair or logical.
I'm also drawn to question 7 from the ANPR, about balancing innovation with consumer protection. I think the US should lead in financial innovation. Regulated markets like Kalshi are safer than offshore alternatives, and they give regular people like me a chance to participate. That's a good thing, not a problem.
In closing, I urge the CFTC to support well-regulated prediction markets with rules that address specific risks without broad bans or overrestrictions. These markets are a practical tool for hedging and information discovery, and they deserve a fair chance to grow under your oversight. Thank you for considering my input.
Sincerely,
Trey Call
