Comment Text:
Dear Chairman and Commissioners,
My name is Tony Park, and I'm an everyday citizen from Washington state. 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, published in 91 FR 12516. I've been actively trading on platforms like Kalshi for a while now, and I believe these markets provide real value, both to me personally and to society as a whole.
I rely on prediction markets for information that I just can't get anywhere else. Whether it's an election outcome or a major public event, the forecasts on these platforms consistently beat polls and pundits in accuracy. That kind of insight helps me make better decisions, and I think it benefits everyone when the public has access to clearer, crowd-sourced data. Beyond that, these markets let regular people like me participate in a financial system thats often locked behind institutional walls. Keeping us out while letting big players dominate would only concentrate information and power with them.
I also want to stress that trading on prediction markets isn't gambling. It takes research and judgment, much like trading stocks or commodities. I use these markets to hedge real risks, like how political decisions might impact my taxes or cost of living. Classifying event contracts as "gaming," as discussed in Questions 15-22 of the ANPR, ignores their legitimate economic purpose. Theyre tools for price discovery and risk management, not slot machines.
I understand concerns about manipulation or insider trading, as raised in Questions 29-32. But the CFTC already has strong tools to address these issues in other derivative markets. Use those existing powers instead of broad bans. Informed trading actually improves price discovery, benefiting all participants. Banning or over-restricting these markets, as Questions 7-14 touch on, would just push activity to unregulated offshore platforms. I've seen firsthand how easy it is to access offshore custodians with a VPN. Driving users there, where theres no consumer protection, is far riskier than regulating markets like Kalshi here at home.
The US should be a leader in financial innovation, not cede ground to other countries. Proportionate, targeted regulation, rather than categorical prohibitions, is the way to go. Address specific risks without punishing everyone else. I urge you to consider these points, especially in relation to Questions 1-6 on core principles and Questions 33-40 on classification and costs. Please support a framework that allows prediction markets to thrive under fair oversight, ensuring access for everyday citizens like me while protecting the integrity of the system.
Thank you for considering my input.
Sincerely,
Tony Park
