Comment Text:
Dear Chairman and Commissioners,
My name is Danny Burt, and I'm just an everyday citizen from Pennsylvania writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've been trading on platforms like Kalshi for a while now, and I believe these markets are valuable and deserve fair, proportionate regulation rather than heavy-handed restrictions or bans.
I got into prediction markets because I wanted a way to make sense of the chaos around elections and big public events. The forecasts on these platforms often seem sharper than anything I hear from pundits or see in polls. That information isn't just helpful for me as a trader; it's useful for everyone who wants a clearer picture of what's likely to happen. I also see real economic value in event contracts. They're not gambling, no matter what some might say. I research and analyze before placing a trade, just like I would for stocks. It's about judgment, not luck. For instance, I've used these markets to hedge against outcomes that could affect my personal finances, like election results that might change tax policies I'm worried about.
I'm all for consumer protection, but I think the CFTC already has strong tools to handle issues like manipulation or insider trading. There's no need to reinvent the wheel or ban entire categories of contracts. Plus, informed trading actually makes prices more accurate, which benefits everyone in the market, not just a few insiders. I also worry that if we over-restrict or shut down regulated platforms like Kalshi, people like me will just turn to offshore alternatives that have no oversight. Thats not safer for anyone. I'd rather see the US lead in financial innovation, setting the standard for how these markets should work instead of letting other countries take the reins.
Looking at some of the specific questions in the ANPR, I want to address a couple from the Public Interest and Listed Activities sections, like Questions 7 and 15. On balancing innovation and protection, I think regulation should focus on specific risks without stifling the whole market. And on whether event contracts are "gaming," I strongly believe they serve legitimate purposes like hedging and forecasting, not just entertainment. Classifying them as gambling would be a mistake.
I urge the CFTC to support well-regulated prediction markets with targeted rules that address real concerns without punishing regular folks like me who use these platforms responsibly. Don't push this activity offshore with bans or overly tight restrictions. Keep the US at the forefront of this growing field.
Thank you for considering my perspective.
Sincerely,
Danny Burt
