Comment Text:
Dear Chairman and Commissioners,
My name is Daelin Smith, and I'm just a regular citizen from Arizona 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 strongly support the idea of well-regulated prediction markets. I hope my perspective as an everyday person can help shape your approach.
I rely on prediction markets to make sense of events that affect my life, like economic policies or election outcomes that could impact my taxes or job prospects. The prices on these platforms often give me insights I can't find in news articles or polls. They're a tool for regular folks like me to participate in a system that feels fairer than just leaving it to big institutions. I also use these markets to hedge personal financial risks. For example, I've placed trades on inflation data releases because they directly affect my budget for rent and groceries. This isn't a game to me; it's a practical way to manage uncertainty.
I want to address a few specific concerns from your ANPR. On the topic of whether event contracts are "gaming" (like in Questions 15-22 under Listed Activities), I firmly believe they aren't. Trading on these markets takes research and real-world judgment, just like investing in stocks or commodities. Classifying them as gambling would be a mistake when they serve legitimate economic purposes like hedging and price discovery. I'm also worried about over-restriction or bans pushing activity to unregulated offshore platforms (relevant to Questions 7-14 on Public Interest). I've seen how accessible and transparent a regulated market like Kalshi is. If you make it too hard to trade here, people will just go to less safe, foreign sites where theres no oversight. That doesn't protect anyone.
Lastly, on the issue of informed trading (Questions 29-32 under Inside Information), I think traders with good information actually make the market better for everyone. Their trades improve the accuracy of prices, which helps me and others make smarter decisions. Of course, insider trading by federal officials or market manipulation is wrong, but those are already illegal. The CFTC has the tools to enforce those laws without shutting down entire markets.
I urge you to support proportionate regulation of prediction markets. Don't ban or over-restrict them. Keep them accessible to everyday people like me under clear, fair rules that prevent abuse but allow innovation. Thanks for considering my input.
Sincerely,
Daelin Smith
