Comment Text:
Dear Chairman and Commissioners,
My name is Owen Piazza, and I'm a small business owner from Illinois. Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on platforms like Kalshi, and I strongly support the development of well-regulated prediction markets in the United States. I believe they provide unique value to people like me and to society as a whole, and I urge the CFTC to adopt a balanced approach that fosters innovation without over-restricting access.
As a business owner, I rely on accurate information to make decisions, especially about things like elections or economic policies that can impact my operations. I've found prediction markets to be an incredible tool for forecasting. Their prices often cut through the noise of polls and pundits, giving a clearer picture of what might happen. Ive used insights from these markets to plan for potential regulatory changes or tax shifts tied to election outcomes. This isnt just useful for me; its valuable for anyone trying to understand the world, from journalists to policymakers.
I also value the freedom to participate in legal, regulated markets like Kalshi. These platforms are transparent and accountable, unlike unregulated offshore sites where theres no oversight. If the CFTC bans or over-restricts prediction markets, I worry that activity will just move to those less safe venues. The US has a chance to lead in financial innovation here. We shouldnt cede that ground to other countries by making it too hard for legitimate markets to operate.
Another concern I have is the idea of classifying event contracts as gambling. I dont see it that way at all. Trading on these markets takes research and judgment, much like investing in stocks or futures. Im not rolling dice; Im making informed decisions to hedge risks or gain insights. These contracts serve real economic purposes, and labeling them as gaming feels like a misstep.
Id like to address a few of the specific questions in the ANPR. On Question 7, regarding public interest, I believe prediction markets benefit the public by improving information and democratizing access to it. On Question 15, about gaming, I urge the CFTC to recognize that event contracts are distinct from gambling due to their forecasting and hedging utility. And on Question 29, about inside information, I trust that the CFTCs existing tools to combat manipulation and insider trading are sufficient. Theres no need for broad bans when targeted enforcement can address bad actors.
Im not blind to the risks. Manipulation or insider trading could be issues, but those are already illegal, and the CFTC has the power to go after violators. Shutting down or overly restricting these markets would punish honest participants like me instead of solving the problem.
I ask the CFTC to support proportionate regulation of prediction markets. Please dont ban or over-restrict them. Lets keep the US at the forefront of innovation while ensuring safety through oversight.
Sincerely,
Owen Piazza
