Comment Text:
Dear Chairman and Commissioners,
My name is Jack Braun, and I'm just a regular guy from South Carolina whos taken an interest in prediction markets. I actively trade on platforms like Kalshi, and Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, published in the Federal Register as 91 FR 12516. I want to share why I support well-regulated prediction markets and why I believe the CFTC should focus on proportionate rules rather than broad restrictions or bans.
Ive found prediction markets to be incredibly useful. They give me insights I cant get from polls or TV pundits, especially when it comes to elections and big public events. Ive seen firsthand how the prices on these platforms often predict outcomes better than so-called experts. Thats not just helpful for me as a trader; its valuable for anyone paying attention, from journalists to regular folks trying to understand whats coming next. Beyond that, I value the freedom to participate in legal, regulated markets like Kalshi. Its not about gambling, its about making informed decisions based on research and judgment, much like investing in stocks. Classifying event contracts as gaming feels wrong to me, since they serve real economic purposes like price discovery and even hedging against uncertainty in my life.
Im also worried about what happens if these markets get over-restricted or banned. Ive looked at offshore platforms before, and theyre nowhere near as safe or transparent as a regulated market like Kalshi. If the CFTC clamps down too hard, people like me will get pushed to those unregulated spaces, and thats worse for consumer protection. I believe the U.S. should be a leader in financial innovation, not hand that advantage to other countries by driving this activity offshore.
I know there are concerns about manipulation or insider trading, and I get that. But the CFTC already has strong tools to tackle those issues, just like with other markets. Banning or heavily restricting prediction markets to stop a few bad actors feels like punishing everyone else. Plus, when informed traders participate, it actually makes the prices more accurate, which benefits all of us. Im looking at some of the questions in the ANPR, like Question 7 on balancing innovation and consumer protection, and Question 29 on whether informed trading helps price discovery. My view is clear: regulated markets are the best way to protect consumers while still allowing innovation, and informed trading does improve the information we all get from these platforms.
Im asking the CFTC to support proportionate regulation that addresses specific risks with targeted rules, not broad bans. Lets keep prediction markets legal, safe, and accessible to regular people like me, while ensuring the U.S. stays ahead in financial innovation. Thank you for considering my perspective.
Sincerely,
Jack Braun
