Comment Text:
Dear Chairman and Commissioners,
My name is Jacob Ritterbeck, and I'm a trader and investor from Louisiana. I've been actively trading on prediction markets like Kalshi for a while now, and Im writing to support the proportionate regulation of these markets in response to your Advance Notice of Proposed Rulemaking on Prediction Markets, published in 91 FR 12516. I believe these markets provide unique value and deserve a fair regulatory framework, not heavy-handed restrictions or outright bans.
As someone who trades regularly, Ive seen firsthand how prediction markets offer information you just cant get elsewhere. Their forecasts on elections and public events are often more accurate than polls or pundits. Ive used these insights to better understand likely outcomes that affect my investments and personal finances. This isnt just helpful for traders like me; its valuable for anyone who wants a clearer picture of what might happen in the world. Shutting down or over-restricting these markets would mean losing that edge, and I dont think thats in anyones interest.
I also value the freedom to participate in legal, regulated markets. Platforms like Kalshi operate under CFTC oversight, which gives me confidence as a consumer. If you ban or overly limit these markets, people arent going to stop trading. Theyll just move to offshore platforms with no rules or protections. Id much rather see the US lead in financial innovation and keep activity here, under your watch, than cede that space to other countries. Weve got a chance to set the standard, and I hope we take it.
Ill admit Im frustrated by the double standard I see. My personal view is simple: either ban all gambling or legalize it all. Why are prediction markets treated as suspect when casinos are running wide open across the country? Trading on Kalshi takes research and judgment, just like any other investment I make. Its not a slot machine. I think the CFTC should focus on real risks, not blanket prohibitions.
On some of your specific questions, like those in Topic B on public interest (Questions 7-14), Id urge you to prioritize innovation and consumer access while using existing tools to protect against manipulation. And on Topic E regarding inside information (Questions 29-32), I believe the laws already in place against insider trading are enough if enforced properly. Theres no need to punish everyone by restricting the whole market.
Im asking you to support a balanced approach to regulating prediction markets. Dont ban broad categories or over-restrict them. Focus on targeted rules to address specific concerns, and keep these markets open for people like me who use them responsibly. Thank you for considering my input.
Sincerely,
Jacob Ritterbeck
