Comment Text:
Dear Chairman and Commissioners,
My name is Chris Koenig, and I'm a student from New Jersey. I'm 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 want to express my strong support for well-regulated prediction markets. I believe they provide unique value and should not be overly restricted or banned.
I've been trading on Kalshi for a while now, and it's been an eye-opening experience. As a student, I don't have access to the kind of insider knowledge or high-powered analysis that big institutions might have, but prediction markets let me engage with real-world events in a meaningful way. The prices on these platforms often reflect information that's hard to find elsewhere, sometimes more accurate than polls or news pundits. It's not just about making a few bucks; it's about learning how to research, think critically, and understand the likelihood of events that affect my life, like economic policies or election outcomes.
What I value most is the freedom to participate in legal, regulated markets. Platforms like Kalshi operate under CFTC oversight, which gives me confidence that there are rules in place to prevent manipulation or fraud. I've looked into some offshore, unregulated platforms out of curiosity, and frankly, they scare me. There's no accountability, no transparency, and no recourse if something goes wrong. If the CFTC cracks down too hard on regulated markets, I worry that people like me will be pushed toward those unsafe alternatives. Regulation should protect users, not drive us into riskier spaces.
I also want to address a concern I know the CFTC has raised in the past about potential misuse, like insider trading or manipulation. I get why that's a worry, and it's a valid one. But the solution isn't to shut down prediction markets. Those behaviors are already illegal, and the CFTC has the authority to enforce against bad actors. Punishing everyone by restricting access feels unfair and misses the mark. I'd urge you to focus on targeted rules that address specific risks without undermining the benefits these markets offer.
Looking at some of the questions in the ANPR, I think my perspective ties directly to Question 7 on balancing innovation with consumer protection and Question 29 on the role of informed traders. Regulated markets strike that balance by fostering innovation while keeping guardrails in place, and informed trading helps make prices more accurate, which benefits everyone. I hope you'll consider these points as you move forward.
In closing, I ask that the CFTC support proportionate regulation of prediction markets. Please don't impose broad bans or overly restrictive rules that would limit access for regular people like me. Keep regulated platforms safe and accessible so we aren't forced into unregulated corners of the internet. Thank you for taking the time to read my comment.
Sincerely,
Chris Koenig
