Comment Text:
Dear Chairman and Commissioners,
My name is Benjamin Thompson, 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 I'm writing to express my strong support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these markets provide unique value to individuals like me, to businesses, and to society as a whole, and I urge the CFTC to craft proportionate regulations rather than overly restrictive rules or outright bans.
As a trader, I rely on prediction markets for information that I simply can't get anywhere else. Their forecasts on elections and public events have consistently proven more accurate than polls or pundits. I use this data to make better decisions, not just for trading but for understanding the world around me. This isn't just useful for me; it benefits everyone when better information is available for public decision-making and price discovery. Beyond that, these markets allow me to hedge real financial risks. For example, Ive used event contracts to offset uncertainties tied to policy changes that could impact my investments or personal finances. This isn't gambling. It takes research and judgment, much like trading stocks or commodities, and I believe event contracts serve a legitimate economic purpose, not a gaming one.
I'm also concerned about access and safety. Platforms like Kalshi, which operate under CFTC oversight, are far safer than unregulated offshore alternatives. If the U.S. cracks down too hard, activity will just move to less transparent venues, which helps no one. Plus, keeping these markets open to regular people like me, not just big institutions, makes the system fairer and the prices more accurate. And let's not forget U.S. competitiveness. We should be leading in financial innovation, not handing the advantage to other countries.
Id like to address some specific questions from the ANPR. On Questions 7-14 under Public Interest, I believe prediction markets strike a vital balance between innovation and consumer protection by providing unique price discovery and risk management tools. Regarding Questions 15-22 on Listed Activities, I urge the CFTC not to classify event contracts as gaming, as they have clear economic utility. And on Questions 29-32 about Inside Information, I think it's worth noting that the CFTC already has robust tools to combat manipulation and insider trading in other derivatives markets. Those same tools can work here without banning entire categories of contracts.
Im not blind to the risks. Insider trading and manipulation are real concerns, but theyre already illegal, and punishing everyone by shutting down these markets isnt the answer. Use the authority you have to target bad actors, not the platforms or traders like me who use them responsibly.
I respectfully ask the CFTC to support proportionate regulation of prediction markets, ensuring they remain accessible, safe, and innovative under your oversight. Thank you for considering my perspective.
Sincerely,
Benjamin Thompson
