Comment Text:
Dear Chairman and Commissioners,
My name is Justin Collins, and I'm a trader and investor based in Illinois. I've been actively trading on prediction markets like Kalshi for a while now, and I wanted to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I strongly support the idea of well-regulated prediction markets, and I hope the CFTC will craft rules that allow these markets to thrive without unnecessary restrictions.
As someone who trades regularly, I find prediction markets incredibly useful for hedging personal and financial risks. For example, I've used these markets to offset uncertainties around economic events like Federal Reserve decisions that impact my investments or inflation data that affects my cost of living. This isn't just gambling, it's a practical tool. I put in the time to research and analyze before making trades, just like I do with stocks or other investments. These markets also provide unique information you can't get from polls or news pundits. I've seen firsthand how their price signals often predict outcomes more accurately than so-called experts.
Im also a big believer in the freedom to participate in legal, regulated markets. Banning or over-restricting prediction markets won't stop people from trading, it'll just push activity to offshore platforms with no oversight. I've traded on regulated platforms like Kalshi, and I feel much safer knowing there's transparency and accountability. If the CFTC clamps down too hard, people like me will lose access to safe, domestic markets, and the activity will move to sketchy, unregulated sites. Thats a worse outcome for everyone.
On the topic of risks like manipulation or insider trading, I think the CFTC already has solid tools to handle these issues. I've read about your existing authority to crack down on market manipulation in other derivatives markets, and I believe those same powers can apply here. There's no need for broad bans or heavy-handed rules when targeted enforcement can address bad actors without punishing the rest of us. I noticed Question 29 in the ANPR asks about insider trading vulnerabilities, and my view is simple: enforce the laws already on the books rather than restricting entire markets.
One small request, though. The current deposit limit of $10 feels way too high for active traders like me. Id urge you to reconsider this cap to allow more flexibility. Especially considering you can bet low amounts under $1.
In closing, I ask the CFTC to support proportionate regulation that lets prediction markets operate while addressing specific risks with focused rules. Please don't ban or over-restrict these valuable tools. Theyre important to traders like me and to the broader public who benefit from better information.
Thank you for considering my input.
Sincerely,
Justin Collins
