Comment Text:
Dear Chairman and Commissioners,
My name is Rob Kessler, and I'm a healthcare professional based in California. I'm writing to express my strong support for the proportionate regulation of prediction markets, as discussed in the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I've been actively trading on platforms like Kalshi for a while now, and I believe these markets provide real value to people like me and to society as a whole. I hope my perspective as an everyday user can help inform your approach.
In my work in healthcare, I often see how uncertainty around public events, like elections or policy changes, impacts my field. Whether it's funding for programs or shifts in regulations, these events affect my patients and my profession. That's why I turn to prediction markets. I've found their forecasts to be far more reliable than polls or pundits on TV. For example, during the last election cycle, Kalshi's market prices gave me a clearer picture of likely outcomes than any news outlet. This isn't just useful for traders; its valuable information for anyone trying to make sense of the world. I think the CFTC should recognize this public benefit when considering regulations, especially as you address questions 7 and 8 about balancing innovation with consumer protection.
I also value the freedom to participate in legal, regulated markets. As someone who isn't a Wall Street insider, I appreciate that platforms like Kalshi let regular people like me engage with these tools. It's not gambling; it's about research and judgment, just like any other investment. Shutting down or over-restricting these markets would cut off access for everyday folks while big institutions likely find workarounds. Worse, it could push activity to unregulated offshore platforms, which are far riskier. I've seen sketchy sites out there with no oversight, and Id much rather trade on a CFTC-regulated platform where there are rules and protections in place. This ties directly to question 14 in your ANPR, about how regulation can manage risks without stifling benefits. I believe regulated markets are the safer, smarter choice.
I understand there are concerns about things like insider trading or manipulation. But those are already illegal, and the CFTC has tools to enforce against bad actors. Banning or overly restricting prediction markets to stop a few cheaters feels like punishing everyone else. It's like closing a hospital because a few doctors make mistakes. Use the existing laws and focus on enforcement instead of broad prohibitions.
I'm asking the CFTC to support well-regulated prediction markets with clear, fair rules that protect users without shutting down access. These markets provide unique insights and democratize participation, and I believe they deserve a place in our financial system. Thank you for considering my input.
Sincerely,
Rob Kessler
