Comment Text:
Dear Chairman and Commissioners,
My name is Rob Eelkema, and I'm an everyday citizen from Virginia writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I'm new to prediction markets, but I strongly support their existence under proper regulation, and I want to weigh in on why I believe the CFTC should encourage these markets with fair rules rather than heavy restrictions.
As someone who values the freedom to participate in legal, regulated financial activities, I see prediction markets as a unique tool. They aren't just for big investors or institutions. They give regular people like me a chance to engage with real-world events in a way that feels meaningful. Whether it's an election outcome or an economic indicator, these markets provide information and insights that I can't find in polls or news. That kind of transparency benefits everyone, not just traders. I also believe this isn't gambling. It takes research and judgment, much like any other investment I've considered.
I do understand there are risks, especially with insider trading. That has to be curbed. I don't want a few bad actors ruining a good thing for the rest of us. But I trust that the CFTC already has tools to tackle manipulation and insider trading, just as it does in other markets. Banning or overly restricting prediction markets to stop a small group of wrongdoers feels like punishing everyone else. Instead, focus on enforcing the laws already in place.
One thing I'm particularly concerned about is pushing activity to unsafe places. Regulated markets, like Kalshi on a CFTC-registered platform, are far safer than unregulated offshore ones. If the rules become too tight, people will just turn to those less secure options, and that helps no one. I think this ties directly to some of the questions in your ANPR, like Question 7 on balancing innovation with consumer protection. I believe the answer is clear: support regulated markets to keep participants safe and maintain oversight, rather than driving activity underground.
I'm also drawn to the idea of democratized access, which connects to Question 11 about the public interest. Letting ordinary citizens participate doesn't just make things fairer, it also improves the accuracy of these markets by bringing in more perspectives. Shutting that out would be a loss for everyone.
I urge the CFTC to adopt proportionate regulations for prediction markets. Please don't ban or over-restrict them. Focus on targeted rules to address specific risks while allowing innovation and participation to thrive. Thank you for considering my perspective as you shape these important policies.
Sincerely,
Rob Eelkema
