Comment Text:
Dear Chairman and Commissioners,
My name is Shelby Barker, and I'm a small business owner from Georgia. I run a local retail store, and like many entrepreneurs, Im always looking for ways to manage risk and stay informed about economic and political events that could impact my business. Thats why Ive started trading on prediction markets like Kalshi and Polymarket. Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516) to urge the CFTC to support proportionate regulation of these markets, not bans or overly restrictive rules.
For me, prediction markets arent just a hobby. Theyre a tool. Ive used platforms like Kalshi to hedge against uncertainties, like potential policy changes or economic shifts that could affect my inventory costs or customer demand. This isnt gambling, no matter what some might say. It takes research and real-world judgment, just like any other investment I make for my business. Classifying event contracts as gaming ignores their legitimate economic purpose, whether its price discovery or risk management. Id ask the CFTC to consider this when addressing questions 15 through 22 on listed activities. These markets serve a real need, especially for people like me who dont have the resources of big institutions.
I also believe the U.S. should be a leader in financial innovation. If we over-restrict or ban these markets, were just pushing activity to unregulated offshore platforms. Ive seen what those look like, and theyre nowhere near as safe or transparent as a CFTC-registered market like Kalshi. Banning or limiting access doesnt solve problems; it creates worse ones. On questions 7 through 14 about public interest, I hope the CFTC weighs how regulated markets protect consumers far better than driving us to less safe options.
Another concern is the idea of insider trading or manipulation. I get why thats a worry, but the CFTC already has strong tools to tackle these issues, just as it does for other derivatives. Plus, informed trading actually helps. When knowledgeable people participate, the prices get more accurate, and that benefits everyone, not just traders. This ties into questions 29 through 32 on inside information. Lets not punish the many for the actions of a few bad actors when existing laws can handle the problem.
Im not saying there shouldnt be oversight. Rules are important. But they need to be fair and focused, not heavy-handed. The freedom to participate in legal, regulated markets matters to me as a business owner and as a citizen. I want the U.S. to stay competitive and innovative, not cede ground to other countries. Please craft regulations that protect consumers while allowing prediction markets to thrive.
Thank you for considering my input.
Sincerely,
Shelby Barker
