Comment Text:
Dear Chairman and Commissioners,
My name is Max Chaldecott, and I'm a student from Michigan with a strong interest in financial markets and public policy. I'm writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. As someone who actively trades on regulated platforms like Kalshi, I want to express my support for well-regulated prediction markets and urge the CFTC to avoid overly restrictive rules or outright bans.
For me, trading on prediction markets isn't just a hobby. It's a way to engage with real-world events, test my understanding of politics and economics, and even hedge personal risks, like potential policy changes that could affect my future career or student loans. These markets provide unique information that I can't get from polls or news outlets. I've seen firsthand how platforms like Kalshi offer accurate forecasts that often outperform traditional pundits. This isn't gambling. It takes research and critical thinking, much like any other form of investing.
What concerns me most is the idea of banning or over-restricting these markets. I value my freedom to participate in legal, regulated spaces where I can learn and make informed decisions. If the CFTC clamps down too hard, I worry that activity will just shift to unregulated offshore platforms. Those places lack oversight, leaving users like me vulnerable to fraud or manipulation. I'd much rather trade on a CFTC-regulated market where there are clear rules and protections in place.
I also believe the CFTC already has strong tools to address risks like manipulation or insider trading, as highlighted in questions 1 through 6 and 29 through 32 of the ANPR. The agency has successfully policed other derivatives markets for years with existing laws and enforcement powers. There's no need to reinvent the wheel or punish law-abiding participants like me with broad prohibitions. Instead, focus on adapting those proven safeguards to event contracts. If a few bad actors try to game the system, target them specifically rather than limiting everyone's access.
Prediction markets are a powerful tool for students like me to learn about the world and engage with civic issues in a meaningful way. I hope the CFTC will support innovation and access by crafting proportionate regulations that address real risks without stifling these markets. Please don't let heavy-handed restrictions push people to less safe, offshore alternatives. I'm counting on a balanced approach that keeps regulated platforms open to everyday traders.
Thank you for considering my perspective.
Sincerely,
Max Chaldecott
