Comment Text:
Dear Chairman and Commissioners,
My name is Robert Voyles, and I'm a trader and investor from Tennessee. I've been actively trading on prediction markets like Kalshi as part of my investment portfolio, and Im writing to support the proportionate regulation of these markets in response to your Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these markets provide real value to people like me, and to society as a whole, and I want to share why I think the CFTC should regulate them thoughtfully rather than restrict them.
I started using Kalshi to get insights that I just can't find anywhere else. The prices on these markets often predict outcomes more accurately than polls or pundits, whether it's an election result or an economic indicator. That information helps me make better decisions, not just in trading but in planning my overall investments. I know I'm not alone in this; the data from prediction markets is useful to everyone, from regular folks to policymakers. Beyond that, these markets let me hedge real risks. For instance, Ive used event contracts to offset uncertainties around policy changes that could impact my portfolio. This isn't gambling, it's a practical tool, just like any other derivative I trade.
I also think it's worth pointing out that regulated platforms like Kalshi are far safer than the alternative. If the CFTC over-restricts or bans these markets, people won't stop trading; they'll just move to unregulated offshore sites with no oversight. I'd much rather trade on a platform under CFTC rules where there's accountability. On top of that, the CFTC already has strong tools to tackle manipulation and insider trading in other markets. I trust those same tools can work here without needing to shut down entire categories of contracts.
I'm particularly concerned about any move to classify event contracts as gaming, and Id like to address Questions 15-22 from your ANPR on this point. These contracts serve legitimate economic purposes like hedging and price discovery. Treating them as gambling ignores the research, analysis, and judgment that go into trading them, skills no different from what I use in stocks or futures. Finally, I believe the U.S. should be a leader in financial innovation. If we over-regulate prediction markets, we risk losing ground to other countries that embrace this technology, and I worry about that for our competitiveness.
I urge the CFTC to support well-regulated prediction markets with targeted rules that address specific risks without broad prohibitions. These markets provide better information, help people like me manage real risks, and keep activity in a safe, regulated space. Please don't let over-restriction push this valuable tool out of reach.
Sincerely,
Robert Voyles
