Comment Text:
Dear Chairman and Commissioners,
My name is James White, and I'm just a regular citizen from Tennessee writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. As a young American, Ive come to really value prediction markets for how they handle information and money. Unlike some parts of government, these markets deal in hard facts and numbers, and they dont spin stories to the people participating. Ive used platforms like Kalshi a few times myself, and I see them as a powerful tool for everyday folks like me.
I strongly support well-regulated prediction markets because they provide benefits you cant get anywhere else. The forecasts they produce are often more accurate than polls or pundits, giving clear insights on everything from elections to economic trends. Thats not just helpful for traders, its useful for the public and even policymakers who need better data to make decisions. Plus, these markets let regular people hedge real risks. For instance, Ive thought about using them to offset uncertainties around policies that could hit my wallet, like tax changes or interest rate moves. This isnt gambling, its practical. Calling event contracts gaming ignores the real economic purpose they serve, like price discovery and risk management.
I also believe the U.S. should be a leader in financial innovation. Platforms like Kalshi are top-tier tools for public forecasting across a wide range of events, free from media bias or unnecessary fluff. Young people like me are thrilled to have access to cold, hard facts in numbers. If we over-restrict or ban these markets, were not just giving up our edge, were pushing activity to unregulated offshore platforms that are far less safe. Regulation through the CFTC, on registered exchanges, is the way to protect consumers, not prohibition.
I want to address a few specific questions from the ANPR. On Questions 7 to 14 about public interest, I think the balance should favor innovation while ensuring consumer protection through oversight, not bans. On Questions 15 to 22 regarding listed activities, event contracts shouldnt be lumped in with gaming; theyre a legitimate market for hedging and information. And on Questions 29 to 32 about inside information, I believe informed trading actually improves price discovery for everyone. The CFTC already has strong tools to tackle manipulation and insider trading, so lets use those instead of punishing all participants with broad restrictions.
Im not naive about the risks, like potential manipulation. But banning or over-regulating these markets isnt the answer. It just hurts regular Americans who use them responsibly and pushes activity to shadier corners of the internet. My ask is simple: support proportionate, targeted regulation of prediction markets. Dont ban or overly restrict them. Lets keep this innovation alive and safe right here in the U.S.
Thank you for considering my views.
Sincerely,
James White
