Comment Text:
Dear Chairman and Commissioners,
My name is Luke Frank, and I'm just a regular guy 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 following this issue because I actively trade on prediction markets like Kalshi, and I believe these platforms are valuable and worth supporting with fair regulation, not heavy-handed restrictions.
Growing up, I was always into sports, and there's nothing better than having the chance to put your money where your passion is. Trading on Kalshi feels like that. It's not just fun; it's a way to engage with real-world events like elections or other public happenings. I've seen firsthand how prediction markets often get these outcomes right, way more than polls or TV pundits. That kind of accuracy isn't just useful for me as a trader; it's valuable for everyone, from regular folks to decision-makers who need reliable information.
I also really value the freedom to participate in legal, regulated markets like Kalshi. This platform is fair and well-organized, offering plenty of opportunities for anyone to get involved and succeed. If the CFTC over-restricts or bans these markets, I worry it will push people like me to unregulated offshore platforms. Those places are far riskier, with no oversight. Keeping markets like Kalshi regulated under the CFTC is safer for everyone. Plus, the US should be leading the way in financial innovation. We shouldn't let other countries take over this space while we fall behind.
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, and I believe they can apply them here too. Banning or overly restricting prediction markets punishes regular traders like me instead of targeting the bad actors. And honestly, informed trading isn't a bad thing; it makes prices more accurate, which benefits all of us in the market. I'm particularly interested in your questions 7 through 14 on balancing innovation with consumer protection, and questions 29 through 32 on insider information. I think the answer lies in proportionate rules that address specific risks without shutting down the whole system.
I'm asking you to support well-regulated prediction markets with targeted, fair rules. Don't ban or over-restrict them. Keep platforms like Kalshi accessible for everyday people like me, and let's make sure the US stays a leader in this growing field. Thanks for taking the time to read my comment.
Sincerely,
Luke Frank
