Comment Text:
Dear Chairman and Commissioners,
My name is Fernando Vasquez, and I'm a healthcare professional from California. I'm writing to express my strong support for the proportionate regulation of prediction markets as outlined in the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). As someone who actively trades on regulated platforms like Kalshi, I believe these markets provide unique value to individuals like me and to society as a whole, and I urge the CFTC to craft rules that allow them to thrive under proper oversight.
In my day-to-day life working in healthcare, I see how uncertainty around policy changes, economic shifts, and even public health events can impact my financial planning. Prediction markets give me a way to hedge against those uncertainties, whether it's an election outcome that might affect healthcare regulations or an economic indicator that could influence my costs. This isn't gambling, it's a practical tool. I put in time to research and understand the events I'm trading on, much like I would with any other investment. Classifying event contracts as "gaming," as discussed in Questions 15-22, overlooks their real economic purpose, like price discovery and risk management, which benefit everyone, not just traders.
I'm also concerned about what happens if these markets are banned or over-restricted. I've seen unregulated offshore platforms out there, and they're far riskier with no consumer protections. Regulated markets like Kalshi, operating under CFTC oversight, are transparent and accountable. If the U.S. pushes this activity offshore by over-regulating, as touched on in Questions 7-14 about public interest, it harms everyday traders like me and cedes financial innovation to other countries. The U.S. should be leading in this space, not falling behind.
I believe the attack on Kalshi at this time is government overreach. It is a oppression to the average hard working American to be restricted to using prediction markets. I believe it is a God given right for every American to have access to be able to trade on topics that the average American can understand. Most Americans do not understand the stock market but they can understand various topics that are available on Kalshi. It is unconstitutional to restrict this now public service as it restricted an American's right to life, liberty and the pursuit of happiness.
I understand worries about manipulation or insider trading, as raised in Questions 29-32. But the CFTC already has strong tools to combat these issues in other derivatives markets, and those can be applied here. Plus, informed trading often improves price discovery, making market predictions more accurate for everyone. Banning or overly restricting these markets to stop a few bad actors punishes the majority of us who trade responsibly. It would be a loss of freedom for average individuals like me who use these platforms as a chance to invest and work toward financial stability.
I appreciate the CFTC taking a thoughtful approach with this ANPR. I urge you to support well-regulated prediction markets that allow ordinary citizens to participate in legal, transparent platforms. Please focus on targeted rules to address specific risks rather than broad prohibitions that could drive activity to unsafe venues. Thank you for considering my perspective.
Sincerely,
Fernando Vasquez
