Comment Text:
Dear Chairman and Commissioners,
My name is Carter Maynard, and I'm a trader and investor based in Florida. I've been active in financial markets for years, and Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I strongly support the development of well-regulated prediction markets in the United States, and I want to share why they matter to me and why the CFTC should craft rules that allow them to thrive.
As someone who uses prediction markets for hedging and risk management, Ive seen firsthand how valuable they can be. For instance, Ive used platforms like Kalshi to hedge against potential policy changes tied to election outcomes that could impact my investments or tax planning. This isnt gambling. Its a practical tool, much like using futures to hedge commodity price swings. Prediction markets give me, and others like me, a way to manage real financial risks tied to events beyond our control. They also provide unique information. Ive found their forecasts on elections and public events to be far more accurate than polls or pundit opinions, which helps me make better decisions, both in trading and in planning.
Im particularly concerned with a few key points. First, the US needs to lead in financial innovation. If we over-restrict or ban prediction markets, were just handing the advantage to other countries while pushing activity to unregulated offshore platforms. Id much rather trade on a CFTC-regulated market like Kalshi, where there are protections in place, than be forced to use some shady overseas site with no oversight. Regulation is the answer, not prohibition. Second, these markets arent just for traders like me. They help everyone by improving price discovery. When informed traders participate, the prices reflect better information, and that benefits the public, media, and even policymakers who rely on accurate forecasts.
I also want to address some of the CFTCs specific questions, like those in Topic B on public interest (Questions 7-14). I believe prediction markets serve the public good through better forecasting and risk management, and theyre not the same as gambling. They have clear economic purposes. On Topic E (Questions 29-32), about inside information, I think informed trading actually helps price discovery. Bad actors can be dealt with using existing laws against insider trading and market manipulation, without shutting down entire markets.
I urge the CFTC to support proportionate regulation that allows prediction markets to operate legally and safely. Dont let overly restrictive rules push innovation and activity offshore. Lets keep these markets accessible to everyday traders and investors like me, under strong but fair oversight.
Thank you for considering my input.
Sincerely,
Carter Maynard
