Comment Text:
Dear Chairman and Commissioners,
My name is Joshua Park, and I'm a trader and investor based in Virginia. I'm writing to express my strong support for the proportionate regulation of prediction markets as outlined in the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I've been actively trading on platforms like Kalshi, and I believe these markets provide unique value that shouldn't be stifled by overly restrictive rules.
As someone who trades regularly, I rely on prediction markets for insights that I simply can't get from polls or pundits. I've seen firsthand how these markets often predict election outcomes or other public events with far more accuracy than traditional sources. For example, during the last election cycle, I watched Kalshi's contract prices shift in real time, reflecting a clearer picture of voter sentiment than any news outlet could provide. This isn't just useful for me as a trader; it benefits everyone by making better information available to the public. I think shutting down or overly restricting these markets would be a loss for transparency and understanding of complex events.
I also value the freedom to participate in legal, regulated markets like Kalshi. These platforms operate under strict oversight, which makes them far safer than unregulated offshore alternatives. If the CFTC imposes bans or heavy restrictions, I worry that trading will just move to less secure, less transparent venues where there's no protection for participants like me. Regulation should encourage safe, domestic markets, not push activity into the shadows. I'm not gambling here; I'm making informed decisions based on research and analysis, just like I do with stocks or other investments.
Looking at some of the specific questions in the ANPR, I want to address a couple that resonate with me. On Question 7, regarding public interest, I believe prediction markets serve the public by aggregating information efficiently and fostering innovation in financial tools. And on Question 23, about procedural aspects, I think the CFTC should focus on categorical rules that support legitimate markets rather than banning entire categories of contracts out of concern for misuse. Targeted oversight can address risks without punishing honest traders.
I understand there are concerns about manipulation or insider trading, but those issues are already illegal and within the CFTC's power to enforce. Banning prediction markets to stop a few bad actors feels like overkill, especially when the majority of us are participating in good faith.
I urge the CFTC to support well-regulated prediction markets that allow everyday traders like me to participate safely and contribute to better forecasting for society. Please don't let overly restrictive rules limit this valuable tool. Thank you for considering my perspective.
Sincerely,
Joshua Park
