Comment Text:
Dear Chairman and Commissioners,
My name is Evan Wang, and I'm a regular citizen from New York 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, and I strongly support the development of well-regulated prediction markets in the United States. I believe they offer real value to people like me, and I hope my perspective can help shape fair and effective rules.
As someone who trades on Kalshi, Ive seen firsthand how prediction markets provide unique information and tools that arent available anywhere else. The prices on these platforms often reflect a clearer picture of whats likely to happen, whether its an election outcome or an economic indicator, than what I hear from news or polls. This isnt just helpful for traders; its useful for anyone making decisions in their personal or professional life. I also use these markets to hedge real financial risks. For example, Ive placed trades to offset potential impacts of policy changes on my taxes and personal budget. This isnt gambling. Its a practical way to manage uncertainty, much like how people use other financial tools to protect their interests.
Im also concerned about the idea of classifying event contracts as gaming. That label doesnt fit. Trading on these markets requires research, analysis, and judgment about real-world events, just like investing in stocks or commodities. These contracts serve legitimate economic purposes, like hedging and price discovery. Speaking of price discovery, I believe informed trading actually makes the market better for everyone. When people with knowledge contribute, the prices become more accurate, and that benefits all participants and even the broader public who rely on this data.
I understand there are risks, like manipulation or insider trading, and I support strong consumer protections to address them. But I want to stress that regulated markets like Kalshi are far safer than unregulated offshore platforms. If we over-restrict or ban these markets, people will just turn to less secure alternatives outside the CFTCs oversight. Thats a worse outcome for everyone. Im particularly interested in your questions under Topic B, like Question 7 on balancing innovation and consumer protection, and Topic E, like Question 29 on whether informed traders help price discovery. I think the answer is clear: regulation should focus on safeguarding participants while allowing these markets to thrive.
I urge the CFTC to support proportionate regulation of prediction markets. Dont ban or overly restrict them. Build rules that address specific risks while preserving the benefits for everyday people like me. Thank you for considering my input.
Sincerely,
Evan Wang
