Comment Text:
Dear Chairman and Commissioners,
My name is Brandon Worster, and I'm just an everyday citizen from Missouri writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. Im not a lawyer or a financial expert, just someone who has taken an interest in prediction markets and actively trades on platforms like Kalshi. I believe these markets have real value, and I want to urge the CFTC to support their growth with fair, proportionate regulation instead of heavy-handed restrictions.
I got into prediction markets because they offer insights I can't find anywhere else. Whether it's an election outcome or an economic indicator, the prices on these platforms often seem more accurate than polls or news pundits. That's not just useful for me as a trader, its helpful for anyone trying to understand what might happen next in the world. Plus, I like that these markets let regular people like me participate. If only big institutions could trade, all that valuable information would stay locked up with them. Opening it up feels fairer and honestly makes the predictions better with more voices in the mix.
What really concerns me, though, is the idea of pushing these markets underground. I've seen unregulated offshore platforms out there, and theyre a mess. No oversight, no consumer protections, just a free-for-all. Compare that to a regulated platform like Kalshi, where there are rules and accountability. If the CFTC cracks down too hard or bans certain contracts outright, people aren't going to stop trading, they'll just go to those shady offshore sites. Thats worse for everyone. I also worry about the US falling behind. We should be leading the way on financial innovation, not letting other countries take the reins because were too strict. This ties into your questions 7 and 8 in the ANPR about balancing innovation with consumer protection. I think regulation can do both if its done right, focusing on safety without stifling growth.
Im not blind to the risks. I know theres concern about manipulation or insider trading, as you bring up in questions 29 through 32. But those are already illegal, right? The CFTC has tools to go after bad actors in other markets, so why not use those same tools here instead of banning entire categories of contracts? Shutting down prediction markets to stop a few cheaters feels like punishing the rest of us who play by the rules.
I hope youll consider my perspective as a regular person who sees real value in these markets. Please support a regulatory framework that keeps prediction markets safe and accessible on US soil, without over-restricting them or driving activity offshore. Thank you for taking the time to read this.
Sincerely,
Brandon Worster
