Comment Text:
Dear Chairman and Commissioners,
My name is Andrew Zouzani, and I'm a pharmaceutical sales professional from Minnesota. I'm writing to express my strong support for the proportionate regulation of prediction markets as outlined in the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I've been an active trader on platforms like Kalshi, and I believe these markets provide real value to individuals like me, as well as to society at large.
In my line of work, I deal with a lot of uncertainty around regulations, drug approvals, and even broader economic policies that can impact my income and job stability. Trading on prediction markets has allowed me to hedge some of these risks. For example, I've used event contracts to offset potential financial hits from policy changes tied to healthcare reforms or election outcomes that could affect my industry. This isn't gambling, it's a practical tool for managing real-world risks, much like how farmers use futures to hedge crop prices. Beyond my personal use, Ive seen how these markets consistently produce forecasts on elections and public events that are more accurate than polls or pundits. That kind of information is invaluable, not just to traders, but to anyone making decisions based on future outcomes, whether it's a business owner or a policymaker.
I also want to stress that regulated platforms like Kalshi are a safer and more transparent option compared to unregulated offshore sites. If the CFTC over-restricts or bans these markets, I worry that activity will just move to less secure venues where theres no oversight. The US has a chance to lead in financial innovation here, and I think we should seize it rather than cede ground to other countries. The CFTC already has strong tools to tackle manipulation and insider trading in other derivatives markets. I believe those can be adapted to event contracts without resorting to broad bans. Targeted rules make more sense than categorical restrictions.
On specific questions from the ANPR, Id like to address Question 7 under Public Interest. Prediction markets balance innovation and consumer protection by providing democratized access to information while operating under regulated frameworks that protect participants. Also, regarding Question 29 on inside information, I think informed trading actually improves price discovery. It benefits everyone by making the markets predictions sharper, as long as existing laws against insider trading are enforced.
I urge the CFTC to support well-regulated prediction markets with proportionate rules that address specific risks without stifling their potential. These markets offer unique forecasting tools, hedging opportunities, and better information for public decision-making. Lets keep them accessible and safe under US oversight.
Thank you for considering my input.
Sincerely,
Andrew Zouzani
