Comment Text:
Dear Chairman and Commissioners,
My name is KenYon E Walker, and I'm just an everyday citizen from Mississippi writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I'm pretty new to the idea of prediction markets, but after learning about them, I strongly support having them regulated properly instead of banned or restricted too much. I think they can be a valuable tool for folks like me, and for society as a whole, if done right.
I believe in the freedom to participate in legal, regulated markets. Prediction markets aren't just for big investors or institutions; they let regular people like me have a say and maybe even protect ourselves financially. For example, if I could use a platform like Kalshi to hedge against something like a policy change or an economic event that might hit my household budget, that would be a real help. It's not gambling, it's planning. And the information these markets provide, from what I've read, is often more accurate than polls or pundits. That kind of data could help all of us make better decisions, whether it's about personal finances or just understanding what's happening in the world.
I'm also impressed by the academic research behind prediction markets. Studies show they can pull together information in a way thats transparent and useful. I think that's something we need more of, especially when so much news feels unreliable. Plus, when people trade with good information, it makes the market prices sharper, which benefits everyone, not just the traders. But if we ban or over-restrict these markets, that benefit disappears. Worse, people will just turn to unregulated offshore platforms, which are way less safe than something like Kalshi that's under CFTC oversight. We don't want that.
Looking at some of the questions in your notice, like those in Topic B about public interest (Questions 7-14), Id say prediction markets balance innovation and protection if regulated smartly. And on Topic E, about inside information (Questions 29-32), I think informed trading actually helps price discovery, as long as existing laws against insider trading are enforced. The US should be a leader in financial innovation, not leave it to other countries. Broad bans or categories of restrictions aren't the answer; targeted rules for specific risks like manipulation make more sense.
I hope you'll consider my perspective as a regular Mississippian who sees potential in these markets. Please support proportionate regulation that lets prediction markets operate safely under CFTC rules, without pushing activity offshore or shutting out everyday folks like me. Thanks for taking the time to read this.
Sincerely,
KenYon E Walker
