Comment Text:
Dear Chairman and Commissioners,
My name is Daisy Reguero, and I'm a small business owner from New York. I run two businesses here, and I also invest a portion of my earnings in binary trading, which I understand is now often called prediction markets, alongside trading in markets like the Dow, Nasdaq, and S&P. Im writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516) because I strongly support the idea of well-regulated prediction markets and want to share my perspective as someone who actively trades on platforms like Kalshi.
For me, prediction markets aren't just a side hobby. They're a practical tool. I use them to hedge risks that directly impact my businesses and personal finances. For instance, trading on election outcomes or economic indicators helps me offset uncertainties around tax policies or interest rates that affect my operations. This isn't gambling, it's a legitimate way to manage risk with real economic purpose. I've always known this as binary trading in finance, and one of the best parts is that my potential loss is predetermined when I buy. That's a lot safer than something like a margin account where losses can spiral. I think we need more financial event trading options, including weekly contracts like Nadex used to offer.
I also believe that regulated markets like Kalshi are far safer than the unregulated offshore platforms out there. If the CFTC bans or over-restricts prediction markets, it won't stop people like me from trading. Itll just push us to less safe, less transparent venues outside U.S. oversight. Thats worse for consumer protection, not better. The U.S. should be leading in financial innovation, not handing that advantage to other countries. Plus, the CFTC already has strong tools to handle manipulation and insider trading in other markets. Those can work here too, without broad bans. Proportionate, targeted rules make more sense than shutting down entire categories of contracts.
Im especially drawn to your questions on public interest (Questions 7-14) and listed activities (Questions 15-22). Prediction markets aren't gaming. They serve a purpose, like hedging and price discovery, and informed trading actually makes the market smarter for everyone. I hope youll consider how these markets help small business owners like me manage real risks, not just speculative bets.
I urge the CFTC to support proportionate regulation of prediction markets. Don't ban or overly restrict them. Keep them safe, transparent, and accessible to people like me who use them responsibly under U.S. oversight. Thank you for considering my input.
Sincerely,
Daisy Reguero
