Comment Text:
Dear Chairman and Commissioners,
My name is Matt Slack, and I'm a trader and investor from Wisconsin. I've been following the growth of prediction markets with interest, having used platforms like Kalshi a few times to inform my own decisions and hedge risks. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516) to express my strong support for well-regulated prediction markets. I believe they offer unique value to individuals like me, as well as to society at large, and I urge the CFTC to adopt a balanced, proportionate approach to regulation rather than imposing broad restrictions or bans.
As a trader, Ive seen firsthand how prediction markets produce forecasts that often outshine polls or pundits. Whether its an election outcome or a major public event, the aggregated wisdom in these markets gives me better information to plan my investments or personal finances. This isnt just helpful for me; its a public good when better data is available to everyone, from policymakers to regular citizens. I also use these markets to hedge real risks. For instance, an election result could shift tax policies that affect my income, and being able to offset that uncertainty through a small position is a practical tool, not a game. These contracts serve legitimate economic purposes, and I strongly believe they shouldnt be classified as gambling.
Im also concerned about what happens if the CFTC over-restricts or bans these markets. Regulated platforms like Kalshi, under CFTC oversight, are transparent and safe. If access is cut off here, activity will just move to unregulated offshore sites with no consumer protections. Id rather see the US lead in financial innovation, setting a global standard for how these markets operate, instead of ceding that ground to other countries. The CFTC already has strong tools to tackle manipulation and insider trading in other derivatives markets. Those same tools can work here without punishing honest participants. And frankly, informed trading isnt a flaw; it improves price discovery and makes the markets signals more reliable for everyone.
Id like to address a couple of specific questions from the ANPR. On Question 7 under Public Interest, I believe prediction markets balance innovation and consumer protection when regulated properly, as they are on designated contract markets. On Question 15 under Listed Activities, I urge the CFTC not to equate event contracts with gaming, as they serve real hedging and informational needs. And on Question 29 under Inside Information, I think informed traders often enhance market accuracy, and existing laws already address abuse by insiders.
Prediction markets are a powerful tool for forecasting, hedging, and democratizing information. I ask the CFTC to support their growth with targeted, fair regulation that addresses specific risks without stifling the entire industry. Thank you for considering my input.
Sincerely,
Matt Slack
