Comment Text:
Dear Chairman and Commissioners,
My name is Brennen Kurz, and I'm a trader and investor based in Georgia. I'm writing to express my support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I've been actively trading on platforms like Kalshi, and I believe these markets provide unique value that deserves protection, not heavy-handed restrictions.
As someone who trades regularly, I value the freedom to participate in legal, regulated markets. Prediction markets aren't just a niche hobby for me; they offer insights I can't get from news or polls. The prices reflect real-time, crowd-sourced information about events that impact my financial decisions, like economic policy changes or election outcomes. I've seen firsthand how trading on Kalshi, a CFTC-registered platform, is safer and more transparent than the unregulated offshore alternatives. If we over-restrict or ban these markets, activity will just move to less safe venues where there's no oversight. That's not a solution; it's a step backward.
I also think the U.S. should be a leader in financial innovation. We have the chance to set the standard for how prediction markets operate globally, but if we clamp down too hard, other countries will take the lead. I don't want to see the U.S. fall behind on something with so much potential. Prediction markets aren't just about trading; they aggregate information in ways that benefit everyone, not just participants like me. Informed trading, even by those with deep knowledge, improves price discovery. That helps the market reflect reality better, which is good for society as a whole.
I'm not blind to the risks. I know there are concerns about manipulation or insider trading, but I believe the CFTC can address these with targeted rules, not broad bans. Proportionate regulation makes more sense than shutting down entire categories of contracts. I was glad to see the CFTC withdraw the restrictive 2024 proposal, and I hope this process leads to a balanced approach. Specifically, on Questions 29-32 about inside information, I think the CFTC should recognize that informed traders often improve market accuracy, while still enforcing existing laws against abuse. And on Questions 7-14 regarding public interest, I urge you to prioritize innovation alongside consumer protection, not sacrifice one for the other.
Prediction markets matter to people like me who want to engage with the world in a meaningful way. Theyre not gambling; theyre a tool for understanding and managing uncertainty. Please support proportionate regulation that keeps these markets accessible on regulated platforms like Kalshi, without driving activity offshore or stifling innovation.
Thank you for considering my perspective.
Sincerely,
Brennen Kurz
