Comment Text:
Dear Chairman and Commissioners,
My name is Nick Verderamo, and I'm a trader and investor based in Florida. I've been actively trading on prediction markets like Kalshi for a while now, and Im writing to express my strong support for well-regulated prediction markets in response to your Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these markets are valuable for individuals like me, for businesses, and for society as a whole, and I urge you to regulate them proportionately rather than imposing broad bans or overly restrictive rules.
As a trader, Ive seen firsthand how prediction markets provide information you cant get anywhere else. Their forecasts on elections and public events are often more accurate than polls or pundits. Ive used these insights to make better decisions, and I know others do too. This isnt just about personal gain. Better information helps everyone, from regular folks to policymakers, make smarter choices. I also value the freedom to participate in legal, regulated markets like Kalshi. Platforms like these are transparent and safe, unlike unregulated offshore sites where theres no oversight. If you ban or over-restrict these markets, youll push activity to those shady corners of the internet, which helps no one.
Prediction markets also let me hedge real risks. Whether its an election outcome that could impact my taxes or a policy change that affects my investments, these markets give me a tool to manage uncertainty. Businesses use them for the same reason, whether its hedging against regulatory shifts or economic data releases. This isnt gambling. Its research, analysis, and judgment, just like trading stocks or commodities. Classifying event contracts as gaming ignores their legitimate economic purpose, and I hope youll reject that framing when considering questions like 15 and 16 in your ANPR.
Im also concerned about U.S. competitiveness. We should be leading in financial innovation, not ceding ground to other countries. Regulated prediction markets are a chance to set the standard globally. On issues like insider trading and manipulation, raised in questions 29 through 32, I believe the CFTC already has strong tools to handle bad actors. Informed trading actually improves price discovery, benefiting all participants. Punishing everyone with a ban because of a few potential wrongdoers doesnt make sense. Target the problems directly instead. And lets not forget: free markets help consumers like me by giving us options and access to information.
I appreciate the CFTCs effort to gather input on these issues, and Im glad youre asking tough questions about balancing innovation and protection, as in questions 7 through 14. My view is clear. Support prediction markets with fair, targeted rules. Dont let overregulation or categorical bans stifle a tool thats useful for so many. Im happy to provide more input if needed.
Sincerely,
Nick Verderamo
