Comment Text:
Dear Chairman and Commissioners,
My name is Daren Reich, and I'm just a regular citizen from North Carolina writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've used prediction markets a few times, and I believe they have real value for people like me. Im not an expert or a big investor, just someone who wants the freedom to participate in legal, regulated markets without unnecessary restrictions.
I support prediction markets because they give ordinary folks a chance to engage with information in a unique way. I've used platforms like Kalshi to make small trades on things like election outcomes or economic indicators, and it's helped me think harder about what's happening in the world. These markets aren't just for Wall Street types; they let people like me have a stake in understanding events that affect our lives. Plus, the prices often seem more accurate than polls or news pundits, which benefits everyone, even those who don't trade.
What worries me is the idea of banning or over-restricting these markets. If the CFTC clamps down too hard, it won't stop the activity; it'll just push it to unregulated offshore platforms where theres no oversight. I've seen how regulated markets like Kalshi operate with clear rules and transparency. That's far safer than sketchy foreign sites with no accountability. Banning prediction markets here would also mean the US loses ground in financial innovation. We should be leading the way on new ideas like this, not handing the advantage to other countries.
I know there are concerns about manipulation or insider trading, and I get that. But the CFTC already has strong tools to tackle those issues in other markets. Why not apply those same powers here instead of creating broad bans? I think your existing authority to go after bad actors is enough if enforced properly. I'm particularly interested in your questions 7 and 8 from the ANPR about balancing innovation with consumer protection. My view is simple: let innovation thrive with sensible oversight, don't kill it with heavy-handed rules. Also, on question 29 about inside information, I believe the benefits of price discovery outweigh the risks as long as you enforce the laws already on the books.
I'm asking you to support proportionate regulation of prediction markets. Keep them legal and accessible on regulated platforms, and use your existing tools to address any problems. Don't let over-regulation push this valuable tool out of reach for everyday Americans like me or out of the US entirely.
Thank you for considering my input.
Sincerely,
Daren Reich
