Comment Text:
Dear Chairman and Commissioners,
My name is Tyeler Townsend, and I'm a regular citizen from Nevada writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I'm not a big player in finance or anything like that, just a small retail trader who has started using platforms like Kalshi to trade on economic events, such as Federal Reserve rate decisions and GDP outcomes. I want to express my support for well-regulated prediction markets and ask that you keep access open for individual traders like me who use these markets responsibly.
Im pretty new to prediction markets, but Ive already seen how useful they can be. Trading on Kalshi has taught me a lot about macroeconomics, stuff I wouldnt have dug into otherwise. Its not just about making a few bucks; its about understanding how these big economic moves affect my life, from interest rates on loans to the cost of living. The information I get from these markets feels more reliable than what I hear from news or pundits. I think thats a benefit for everyone, not just traders.
I dont see this as gambling at all. It takes research and thought to make trades on these platforms, just like investing in stocks. Im looking at data, reading reports, and making educated guesses about real-world events. Calling this gaming doesnt make sense to me. It serves a real purpose, especially for someone like me who wants to hedge against economic shifts that impact my budget.
I know there are concerns about things like manipulation or insider trading, and I get that those are real issues. But the CFTC already has strong tools to tackle those problems, right? Ive read that you have the power to go after bad actors in any regulated market. Instead of broad bans or heavy restrictions, I think targeted rules to address specific risks make more sense. Dont punish small traders like me for what a few might do wrong. And honestly, shutting down or over-regulating these markets would just push activity to unregulated offshore platforms, which seems way riskier.
I also believe the US should be a leader in financial innovation. If we clamp down too hard, other countries will step in and take the lead. We should be setting the standard for how to regulate prediction markets fairly, not walking away from them. In response to some of your questions, like those in Topic Area B about balancing innovation and consumer protection (Questions 7-14), Id say lets focus on rules that protect people but still allow new ideas to grow. And for Topic Area C on listed activities (Questions 15-22), please dont label these contracts as gambling when they have clear economic value.
Im just one small trader, but I hope youll consider my perspective. Please support proportionate regulation that keeps prediction markets accessible to everyday folks like me while addressing real risks with the tools you already have. Thank you for taking the time to read this.
Sincerely,
Tyeler Townsend
