Comment Text:
Dear Chairman and Commissioners,
My name is Antonio Jimenez, and I'm just an everyday citizen from California 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 for fun, and Ive come to see their real value, not just for me but for society. I strongly support well-regulated prediction markets and want to explain why I think the CFTC should encourage them with fair, targeted rules instead of heavy restrictions or bans.
I started using these platforms because I was curious about forecasting events like elections or big public moments. Honestly, Ive found their predictions to be way more accurate than polls or TV pundits. Thats information I cant get anywhere else, and its helpful for understanding whats really likely to happen. But its not just about forecasts. Ive also thought about how these markets could help me hedge personal financial risks, like if an election outcome might affect my taxes or costs. Its a practical tool, not a game, even if I started using it for fun. To me, calling event contracts "gaming" feels wrong. They take research and judgment, just like investing in stocks. They serve a real economic purpose, and I think the CFTC should recognize that.
Im also worried about what happens if the CFTC over-regulates or bans these markets. If that happens, Ill probably stop using apps like Kalshi altogether. Worse, I know people will just move to unregulated offshore platforms, which are far less safe. Regulated markets in the US, with oversight, protect consumers like me much better. The CFTC already has strong tools to stop manipulation and insider trading in other markets. I believe those can work here too, without needing broad bans that punish everyone. Plus, informed traders actually make prices more accurate, which benefits all of us. Id rather see the US lead in financial innovation than push this activity to other countries.
Looking at some of your specific questions, like those in the Public Interest section (Questions 7-14), I think prediction markets balance innovation with real benefits like price discovery and risk hedging. On Listed Activities (Questions 15-22), I urge you not to classify these as gambling but as legitimate tools. And on Inside Information (Questions 29-32), I believe the existing laws against insider trading are enough if enforced properly.
Im asking the CFTC to support proportionate regulation that addresses specific risks without shutting down prediction markets. Let regular people like me participate in legal, safe, US-based platforms. Dont over-restrict or ban something thats useful and innovative.
Thank you for considering my input.
Sincerely,
Antonio Jimenez
