Comment Text:
Dear Chairman and Commissioners,
My name is Dezmond Sweet, and I'm just a regular citizen from Texas writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I'm not a lawyer or a financial expert, just someone who believes in the value of these markets and wants to see them regulated fairly, not banned or over-restricted.
I've been trading on platforms like Kalshi for a while now, and I can tell you firsthand that prediction markets aren't just a game or a gamble. Theyre a tool. I put time into researching events, reading up on politics, economics, and even weather patterns before I place a trade. It's not luck; it's work, just like any other kind of investing. What I get out of it isnt just the chance to make a few bucks. Its access to information and insights I cant find anywhere else. The prices on these markets often tell a clearer story than polls or news pundits, and that benefits everyone, not just traders like me.
Im especially passionate about keeping these markets open to everyday folks like myself. If you restrict access to only big institutions, youre keeping the best information locked away from regular people. Informed trading, where people like me bring our own knowledge and judgment to the table, actually makes the market prices more accurate. Thats not a bug; its a feature. It helps with price discovery, which is good for society as a whole, whether someone trades or not. I know there are worries about insider trading or manipulation, but those are already illegal. The CFTC has the power to go after bad actors without shutting down the whole market. Banning prediction markets to stop a few cheaters would be like closing the stock market because of a handful of bad trades. It punishes the wrong people.
Id like to speak to a couple of the questions in your notice, specifically from Topic E, like Question 29 about whether informed traders help price discovery. I believe they absolutely do. My trades, based on what Ive learned through my own effort, contribute to a better picture of whats likely to happen. And on Question 31 about insider trading risks, I think the focus should be on enforcing existing laws, not creating new barriers that keep regular folks out.
Im asking you to support proportionate regulation of prediction markets. Dont over-restrict or ban them. Keep them legal and accessible on regulated platforms like Kalshi, where theres oversight to protect participants. Thats safer than pushing activity to offshore sites with no rules. Thanks for taking the time to read my thoughts, and I hope youll consider the value these markets bring to people like me.
Sincerely,
Dezmond Sweet
