Comment Text:
Dear Chairman and Commissioners,
My name is Oluwaleke Fakorede, and Im a software engineer based in New Jersey. 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 platforms like Kalshi, I strongly support the development of well-regulated prediction markets and believe they serve an important purpose for individuals, businesses, and society as a whole.
I got into prediction markets because, as a tech professional, I value data and accurate information. Ive found that platforms like Kalshi often provide forecasts on elections and public events that beat out polls or pundits by a wide margin. This isnt just useful for me as a trader; its valuable for anyone trying to make sense of the world, whether its journalists, policymakers, or just regular folks. On top of that, Ive used these markets to hedge personal financial risks tied to economic events, like inflation data releases that impact my budget or policy changes that could affect my industry. This isnt gambling. Its a practical tool, much like trading stocks or futures, grounded in research and real-world judgment.
Im also concerned about the idea of over-restricting or banning these markets. If the CFTC clamps down too hard, people like me wont stop seeking out these tools; well just end up on unregulated offshore platforms that lack oversight. Regulated markets like Kalshi are safer, transparent, and accountable. Id rather see the U.S. lead in financial innovation than push this activity to other countries where theres less protection for users. And lets be clear, event contracts arent gaming. They serve real economic purposes like hedging and price discovery, which benefit everyone, not just traders.
Addressing some of the specific questions in the ANPR, I believe informed trading, as raised in Questions 29-32, actually improves price discovery and helps the market reflect reality better. Banning markets to stop potential insider trading is overkill when laws against it already exist. On Questions 7-14 regarding public interest, I urge you to balance innovation with consumer protection by focusing on targeted rules, not broad bans. Proportionate regulation can address risks like manipulation without killing the benefits these markets offer.
Ive read academic studies showing how prediction markets aggregate information efficiently, and I believe the CFTC has a chance to support a tool that improves public decision-making while letting regular people like me participate in a fair, legal system. Please craft rules that encourage responsible growth of prediction markets, not restrictions that punish users or stifle U.S. competitiveness.
Thank you for considering my input.
Sincerely,
Oluwaleke Fakorede
