Comment Text:
Dear Chairman and Commissioners,
My name is Syd Shawver, and I'm a small business owner from Alaska. I've been running my own company here for the last few years, navigating the ups and downs of an economy that can be unpredictable, especially in a remote state like mine. I'm writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I strongly support the development of well-regulated prediction markets, and I want to share why they matter to someone like me.
As a business owner, I'm always looking for ways to manage risk and make informed decisions. Traditional investing in large markets often feels out of reach or overly complex for someone with my resources. That's why I've turned to prediction markets like Kalshi, where I actively trade. These platforms are straightforward, easy to understand, and give me options to engage with events that directly impact my business, like economic indicators or policy changes. I value the freedom to participate in legal, regulated markets that are accessible to regular people like me, not just big institutions.
I believe regulated prediction markets are far safer than the alternative. If the CFTC over-restricts or bans these markets, people won't just stop trading. They'll turn to unregulated offshore platforms that offer no protections. I've seen enough in business to know that pushing activity into the shadows never solves problems; it creates bigger ones. Keeping markets like Kalshi under CFTC oversight ensures transparency and accountability, which benefits everyone.
I'm also concerned about US competitiveness. We should be leading the way in financial innovation, not handing the advantage to other countries. Prediction markets are a cutting-edge tool, and if we stifle them here, other nations will step in to fill the gap. Let's not cede that ground. On top of that, I think informed trading actually helps everyone. When people with knowledge participate, the prices on these markets become more accurate. That information isn't just useful to traders; it helps the public, businesses, and even policymakers understand what's likely to happen.
Looking at some of the specific questions in the ANPR, I want to address numbers 7 and 8 under Public Interest. I believe prediction markets serve the public good by providing unique data and fostering innovation, as long as consumer protections are in place through regulation. And for question 29 under Inside Information, I think informed traders improve price discovery, and existing laws against insider trading are enough to handle bad actors without shutting down entire markets.
In closing, I urge the CFTC to support proportionate regulation of prediction markets. Don't ban or over-restrict them. Keep platforms like Kalshi accessible under clear, fair rules that protect participants while allowing the US to stay ahead in financial innovation. Thank you for considering my perspective.
Sincerely,
Syd Shawver
