Comment Text:
Dear Chairman and Commissioners,
My name is Reese Blaskowski, and I'm a trader and investor based in Minnesota. I've been actively trading on prediction markets like Kalshi for a while now, and Im writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I strongly support the idea of well-regulated prediction markets, and I hope the CFTC will create rules that allow regular people like me to participate in legal, safe markets without pushing activity to riskier offshore platforms.
I rely on prediction markets to hedge real risks that affect my financial life. For example, Ive used platforms like Kalshi to trade contracts tied to economic indicators that impact my investments, like inflation data or interest rate decisions. These markets give me a way to manage uncertainty in a way that traditional investments sometimes can't. I know other traders and small businesses who do the same, whether it's hedging against policy changes or election outcomes that could shift their tax burdens. This isn't gambling to me; it's a practical tool.
Im worried that overly restrictive rules or outright bans would hurt regular folks like me while failing to solve the problems you're concerned about. The CFTC already has strong tools to stop manipulation and insider trading in other derivatives markets. I believe those can be applied to prediction markets without needing broad categorical bans. If anything, banning or over-restricting these markets will just push trading to unregulated offshore platforms where theres no oversight at all. Ive seen those sites. Theyre sketchy, and Id much rather trade on a regulated U.S. market like Kalshi where I know there are protections in place.
On that note, I think the U.S. should be leading the way in financial innovation. If we clamp down too hard, other countries will step in and take the lead. Weve got a chance to set the standard for how these markets work, balancing consumer protection with the freedom to participate. Im particularly interested in your questions 7 through 14 on public interest and innovation versus protection. My view is that proportionate, targeted regulation is the way to go. Address specific risks like manipulation without shutting down entire markets.
I also want to touch on questions 23 to 28 about procedural aspects. I think the CFTC should make public interest determinations on a case-by-case basis rather than broad categories. That way, legitimate markets arent unfairly restricted because of a few bad apples.
I urge you to support rules that let prediction markets operate under fair, clear regulation. Dont let heavy-handed restrictions push people like me to unsafe alternatives or cede this innovative space to other nations. Thank you for considering my perspective.
Sincerely,
Reese Blaskowski
