Comment Text:
Dear Chairman and Commissioners,
My name is Annaleise Miller, and I'm a student from Connecticut with a strong interest in economics and public policy. I've been actively trading on prediction markets like Kalshi for the past year, and Im writing to express my support for the proportionate regulation of these markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these platforms provide unique value to society, and Id like to share my perspective as someone who uses them regularly.
As a student, Im constantly seeking better ways to understand the world around me, especially when it comes to elections and major public events. Prediction markets have been a game-changer for me. The prices on platforms like Kalshi often cut through the noise of polls and pundits, giving me clearer insights into what might actually happen. Ive seen firsthand how these markets can forecast outcomes with surprising accuracy, and I think that kind of information is useful not just for traders like me, but for everyone trying to make sense of uncertain times. Its a public good, plain and simple.
I also want to push back on the idea that event contracts are just gambling. To me, trading on these markets feels more like investing. It takes research and critical thinking, much like picking stocks or following economic trends for a class project. Ive used Kalshi to bet on things like inflation numbers or election results, not for thrills, but to test my understanding of these issues. Thats a legitimate economic purpose, not a game. Addressing Questions 15-22 in your ANPR, I urge the CFTC to avoid classifying event contracts as "gaming" and instead recognize their role in price discovery and informed decision-making.
Im not blind to the risks, though. Theres always a chance of manipulation or insider trading in any market. But heres the thing: the CFTC already has strong tools to tackle those problems, as youve shown with other derivatives. Plus, regulated platforms like Kalshi are a much safer space for traders than unregulated offshore sites. If you over-restrict or ban these markets, people like me will just get pushed to less secure venues. Thats not a solution. In response to Questions 29-32 on insider trading, I believe the focus should be on enforcing existing laws, not creating broad prohibitions that hurt honest participants.
Im excited to see the CFTC taking a thoughtful approach with this ANPR. My ask is simple. Please support a regulatory framework for prediction markets that protects consumers while allowing innovation to thrive. These markets are too valuable to over-restrict or shut down. Lets keep them safe and accessible for students, researchers, and everyday people who benefit from better information.
Thank you for considering my comments.
Sincerely,
Annaleise Miller
