Comment Text:
Dear Chairman and Commissioners,
My name is Davey Squires, and I'm a trader and investor based in Alaska. I've been actively trading on prediction markets like Kalshi for a while now, and I'm writing to express my strong support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these markets provide real value to people like me, and I want to share my perspective on why they shouldn't be treated as gambling and why regulation, not restriction, is the way to go.
As someone who trades regularly, I see prediction markets as a unique tool for gaining insights that I can't find anywhere else. The prices on these platforms often reflect a clearer picture of what's likely to happen than polls or news commentary. For me, trading on event contracts isn't just a hobby or a game. It takes research and judgment, much like trading stocks or commodities. Ive used Kalshi to hedge against economic events that could impact my investments, like changes in interest rates or inflation data. This isn't gambling. It's a legitimate way to manage risk and make informed decisions. I think labeling these contracts as "gaming," as some might suggest in questions 15-22 of your ANPR, misses the economic purpose they serve.
One big reason I'm writing is to stress how much safer regulated markets like Kalshi are compared to unregulated offshore platforms. I've seen ads for some of those foreign sites, and they look sketchy at best. No oversight, no accountability. If the CFTC clamps down too hard or bans certain types of event contracts, people like me won't just stop trading. We'll get pushed to those unsafe, unregulated venues where there's no protection against fraud or manipulation. Id rather trade on a platform under CFTC rules where I know there are safeguards in place. Your questions 7-14 about balancing innovation and consumer protection hit on this directly. I think regulation that keeps markets open but safe is the right balance.
I also want to address a concern I know comes up, like in questions 29-32 about insider trading. Yes, bad actors could try to game the system. But insider trading and market manipulation are already illegal, and the CFTC has the power to go after violators. Shutting down or over-restricting prediction markets to stop a few bad apples punishes honest traders like me who use these tools responsibly. Just enforce the rules you already have.
I appreciate the chance to weigh in on this. Prediction markets matter to me as a trader, and I believe they benefit society by providing better information and democratizing access to financial tools. I urge the CFTC to support proportionate regulation that addresses specific risks without banning or overly restricting these markets. Keep platforms like Kalshi viable and safe for people like me to use.
Sincerely,
Davey Squires
