Comment Text:
Dear Chairman and Commissioners,
My name is Archie White, and I'm a business owner and musician from Tennessee. As a member of Generation Z, Im passionate about finding ways to get my peers engaged with issues that matter, like politics and public events. Ive used prediction markets a few times, and Im writing to support well-regulated event contracts as outlined in your Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these markets offer unique value and should not be overly restricted.
Prediction markets are more than just a niche financial tool. They provide information you cant find anywhere else, often predicting outcomes more accurately than polls or pundits. For me, as someone whos always looking for trends to spark interest among my generation, platforms like Kalshi are a game-changer. Trading on political events, for instance, can get young people to actually pay attention to the news. Most of Gen Z couldnt care less about government policy or whos in charge until something controversial blows up on social media. Prediction markets turn that apathy into curiosity by giving us a stake in the outcome. Thats a public good, not gambling.
I strongly believe event contracts shouldnt be classified as gaming. They serve real economic purposes, like price discovery and forecasting. Trading on these platforms takes research and judgment, just like investing in stocks. Calling it gaming feels like a misstep when the data shows real benefits. Academic research backs this up, showing how prediction markets aggregate information efficiently. Informed trading, even by those with unique insights, improves price accuracy for everyone. Addressing Question 29 from your ANPR, I think this kind of trading helps rather than harms the market.
I also worry about the US falling behind. We should be leading in financial innovation, not letting other countries take the reins. Overly broad bans or restrictions, as opposed to targeted regulation, could push activity to unregulated offshore platforms. Thats worse for everyone. On Question 7, regarding public interest, I urge you to balance innovation with consumer protection by focusing on specific risks like manipulation, which the CFTC already has tools to address, rather than categorical prohibitions.
My ask is simple. Please support proportionate regulation of prediction markets. Dont ban or over-restrict them. Let regular folks like me participate in legal, regulated markets that provide better information and engage a generation thats often tuned out. These markets arent just about profit; theyre about understanding the world around us.
Thank you for considering my input.
Sincerely,
Archie White
