Comment Text:
Dear Chairman and Commissioners,
My name is Ricco Sastoque Jr., and Im a policy and government professional from North Carolina. Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. As someone who actively trades on platforms like Kalshi, Ive seen firsthand the value of these markets, and I strongly support their proportionate regulation under the CFTCs oversight.
Prediction markets are a tool that provides information to me. Ive noticed how often their forecasts beat out polls or pundits when it comes to predicting election outcomes or economic events. That accuracy isnt just helpful for traders like me, its a public good. It helps everyone, from businesses to regular citizens, make better decisions. I also use these markets to hedge personal financial risks, like potential policy changes that could impact my work or family budget. This isnt gambling. Its a legitimate economic activity, requiring research and judgment, much like trading stocks or commodities. Classifying event contracts as gaming would be a mistake, as they serve real purposes like price discovery and risk management.
Im also a firm believer in the freedom to participate in legal, regulated markets. Platforms like Kalshi, under CFTC oversight, are far safer than unregulated offshore alternatives. On top of that, I think the U.S. should be leading the way in financial innovation. We cant afford to cede this space to other countries. Lets set the standard with smart rules instead of falling behind.
Addressing some of your specific questions, like those in Topic Area B on public interest (Questions 7-14), I believe prediction markets balance innovation with consumer protection when regulated properly. Theyre a democratizing force, giving everyday people access to valuable data. On Topic Area C (Questions 15-22), I urge you not to label event contracts as gaming; theyre economic tools, not games of chance. And regarding Topic Area E on inside information (Questions 29-32), I think informed trading actually improves price discovery, benefiting all participants. The CFTC already has tools to tackle insider trading and manipulation, so lets use those instead of broad bans.
I understand concerns about manipulation or misuse, but categorical restrictions punish the many for the actions of a few. Targeted, proportionate regulation is the better path. I ask that the CFTC support well-regulated prediction markets and avoid over-restricting or banning event contracts. Lets keep the U.S. at the forefront of financial innovation while protecting market integrity.
Thank you for considering my input.
Sincerely,
Ricco Sastoque Jr.
