Comment Text:
Dear Chairman and Commissioners,
My name is Connor Howell, and I'm a software engineer based in Georgia. Im writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. As someone who actively trades on platforms like Kalshi, I strongly support the development of well-regulated prediction markets in the United States. I believe they provide unique value, both to individuals like me and to the broader economy.
I got into prediction markets because they offer insights I can't find anywhere else. Whether it's an election outcome that could impact tech regulations or a Federal Reserve decision that might affect my personal finances, these markets help me make sense of uncertainty. Beyond just trading, Ive used them to hedge real risks, like potential policy changes that could hit my small freelance tech projects. This isnt gambling to me. Its about research, analysis, and making informed decisions, much like investing in stocks or other financial instruments. I think its wrong to label event contracts as "gaming" when they serve genuine economic purposes like price discovery and risk management.
Im also concerned about what happens if these markets are over-restricted or banned outright. Ive seen unregulated offshore platforms out there, and theyre nowhere near as safe or transparent as a CFTC-registered exchange like Kalshi. If we push this activity offshore, we lose oversight and expose consumers to far greater risks. Regulation, not prohibition, is the answer to protect people like me who want to participate in legal, transparent markets. I appreciate the CFTCs focus on consumer protection, as raised in questions 7 through 14 of the ANPR, and I urge you to prioritize rules that keep these markets accessible under proper supervision.
On a bigger scale, I believe the US has a chance to lead in financial innovation. As a tech professional, I see how quickly other countries are moving to embrace new financial tools. If we stifle prediction markets here, were just handing that leadership to others. I think the CFTC can strike a balance, as discussed in questions 1 through 6 on core principles, by using existing tools to prevent manipulation and insider trading without resorting to broad bans.
Im not blind to the concerns about potential abuse in these markets. But the solution isnt to shut them down; its to enforce the laws we already have and tailor regulations to address specific risks. I respectfully ask that the CFTC support proportionate regulation of prediction markets, ensuring they remain accessible to everyday people like me while maintaining strong oversight. Lets keep this innovation alive and safe in the US.
Thank you for considering my input.
Sincerely,
Connor Howell
