Comment Text:
Dear Chairman and Commissioners,
My name is Andrew Fritz, and I'm a small business owner from Wisconsin. I run my own company and have also developed a hedge fund, which has given me a passion for turning my insights into active trading, even in small sizes. It keeps me engaged with the news in a way that feels meaningful. 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). I've been trading on platforms like Kalshi, and I believe these markets offer unique value to people like me and to society as a whole.
Prediction markets aren't just a hobby for me; they provide information I can't get anywhere else. I've seen firsthand how their forecasts often beat polls or pundits in accuracy. Whether it's an election outcome or an economic indicator, the prices on these markets give me a clearer picture of what's likely to happen, which helps me make better decisions for my business. I think this benefit extends beyond traders to the public, media, and even policymakers who can use this data for better decision-making. Academic research backs this up, showing how these markets aggregate information efficiently. I'm all for more data transparency so everyone can access these insights, not just a select few.
I also believe that informed trading makes these markets stronger. When people with real knowledge participate, the prices get sharper, and that helps everyone involved. It's not gambling; it's about research and judgment, just like trading stocks. Plus, being able to participate in the marketplace based on what I learn from the news is exciting. I'm not just a passive observer anymore; I have a stake in understanding what's happening.
On the innovation front, I think the US should be leading the way on financial tools like prediction markets. If we over-restrict or ban them, we're just handing the advantage to other countries. I'd rather see regulated platforms like Kalshi thrive here under CFTC oversight than push activity to offshore, unregulated sites. Addressing specific concerns like insider trading or manipulation doesn't mean shutting things down. The CFTC already has tools to tackle those issues, as noted in questions 29-32 of the ANPR about inside information. Use those tools, don't punish the rest of us.
I'm also drawn to questions 7-14 on public interest. I believe the balance should tip toward innovation while protecting consumers with targeted rules, not broad bans. Prediction markets help with price discovery, and that's a public good worth preserving.
In closing, I urge the CFTC to support well-regulated prediction markets. Don't let a few bad actors or hypothetical risks derail something that benefits so many. I'm happy to be part of this conversation and hope my perspective as a business owner and active trader helps.
Sincerely,
Andrew Fritz
