Comment Text:
Dear Chairman and Commissioners,
My name is Khahlid Seals, and I'm a software engineer based in Georgia. Im writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. As someone who actively trades on regulated platforms like Kalshi, I strongly support the development of well-regulated prediction markets, and I urge the CFTC to create a framework that allows everyday people like me to participate without overly restrictive barriers.
I got into prediction markets because I saw how they provide unique information you can't find anywhere else. Working in tech, I'm used to digging into data and analyzing trends to solve problems. Trading on Kalshi feels like an extension of that. I research events, weigh probabilities, and make informed decisions, just like I would when investing in stocks or other assets. It's not gambling; it's a skill that takes time and effort. What's more, the prices on these markets often predict outcomes better than polls or pundits. That benefits everyone, not just traders, by giving society clearer signals about what might happen next.
One reason I care so much about this is the freedom to participate in legal, regulated markets. Prediction markets democratize access to financial tools. If only big institutions or insiders can trade, the valuable information stays locked up with them. Allowing regular folks like me to join in makes the markets predictions more accurate and levels the playing field. I also believe that informed trading, even by those with unique insights, improves price discovery. Better prices help everyone make smarter decisions, whether they trade or not. On this point, Im glad to see the CFTC asking about the role of informed traders in Question 29. My view is that their participation is a net positive for the markets accuracy, as long as manipulation is policed.
I know there are concerns about insider trading or manipulation, and I get why thats a worry. But those issues are already illegal under existing laws, and the CFTC has the power to enforce them. Banning or over-restricting prediction markets to stop a few bad actors punishes the rest of us who play by the rules. Its like shutting down a highway because some people speed. Instead, focus on targeted enforcement using the tools you already have.
I also want to touch on Question 7, about balancing innovation and consumer protection. Regulated markets like Kalshi are far safer than unregulated offshore platforms. If the U.S. clamps down too hard, people will just trade elsewhere, with less oversight. Let's keep this activity here, under your watch, where it can be properly monitored.
In closing, I ask the CFTC to support proportionate regulation of prediction markets. Don't ban or over-restrict them. Create rules that address specific risks while letting regular people participate in this valuable tool for information and financial planning. Thank you for considering my perspective.
Sincerely,
Khahlid Seals
