Comment Text:
Dear Chairman and Commissioners,
My name is Matthew Beardsley, and I'm a trader and investor based in Illinois. I've been actively trading on prediction markets like Kalshi for a while now, and as someone who's had success in these markets, I wanted to share my perspective 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 my input helps shape rules that keep these markets fair and accessible to everyone.
For me, trading on platforms like Kalshi isn't just a hobby. It's a way to engage with real-world events and make informed decisions based on research and judgment. I've put time into understanding economic trends, political outcomes, and other events that impact my trades, and I know I'm not alone in that. These markets aren't gambling, no matter what some might say. They're about analyzing information and taking calculated risks, much like trading stocks or commodities. Classifying event contracts as "gaming" would be a mistake, since they serve real economic purposes like price discovery and hedging against uncertainty. I urge the CFTC to consider this distinction when addressing questions 15 through 22 on listed activities.
I also want to stress how important it is to have regulated markets in the U.S. As a trader, I feel much safer participating on a platform like Kalshi, which operates under CFTC oversight, compared to unregulated offshore sites. If the CFTC bans or over-restricts prediction markets, I worry that activity will just get pushed to those less safe venues where theres no accountability. That doesn't protect anyone; it just creates more risk. I'd ask the Commission to think about this when looking at questions 7 through 14 on balancing innovation and consumer protection.
Another big concern for me is the freedom to participate in legal, regulated markets. I've worked hard to build my skills as a trader, and I believe in an exchange environment that encourages all participants, not just big institutions. If everyday traders like me are shut out, the markets lose valuable perspectives, and the information they generate becomes less accurate. Banning or limiting access would be unfair to people who play by the rules and contribute to fair pricing.
I'm not blind to the concerns about manipulation or insider trading, but I think the CFTC already has tools to handle those issues. Punishing everyone by restricting these markets isn't the answer. Instead, focus on enforcing existing laws and creating targeted rules to address specific risks. I hope the Commission will keep these markets open and accessible while ensuring they're safe and fair.
Thank you for considering my comments. I strongly encourage the CFTC to support proportionate regulation of prediction markets and avoid bans or overly restrictive rules that could harm traders like me and push activity offshore.
Sincerely,
Matthew Beardsley
