Comment Text:
Dear Chairman and Commissioners,
My name is Benjamin Glaser, and I'm a student from Ohio. I'm writing to provide my input on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on platforms like Kalshi, and I strongly support the development of well-regulated prediction markets in the United States. I believe they offer unique value to individuals like me, as well as to society as a whole, and I urge the CFTC to adopt proportionate regulations rather than imposing broad restrictions or bans.
As a student, I find prediction markets to be an incredible tool for learning about real-world events and making sense of complex issues. Trading on Kalshi has taught me to research economic indicators, follow political developments, and think critically about probabilities. This isn't gambling, it's a form of engaged learning. The prices on these markets often provide insights I can't find in polls or news outlets, and that information benefits not just traders but anyone paying attention, including the public and policymakers. I believe this aligns with the CFTC's questions on price discovery and public interest in section B of the ANPR, specifically questions 7 and 9.
I also see prediction markets as a way to hedge personal risks. For example, I've used them to offset uncertainties around inflation data releases that affect my budget as a student with limited income. This kind of utility shows why event contracts shouldn't be labeled as gaming. They serve real economic purposes, a point raised in section C of the ANPR under question 15. I worry that over-restricting or banning these markets would push activity to unregulated offshore platforms, which are far less safe for consumers like me. Regulation, not prohibition, is the answer to protect participants, as touched on in question 11.
I'm also concerned about US competitiveness. If we stifle prediction markets with heavy-handed rules, other countries will take the lead in this innovative space. The US should be at the forefront of financial technology, not lagging behind. This ties into the broader public interest discussion in section B. On top of that, I believe the CFTC already has strong tools to handle issues like manipulation and insider trading, as noted in section A and E of the ANPR. Let's use those existing powers instead of creating broad categorical bans that punish everyone. Informed trading, even by those with unique insights, often improves price accuracy, which helps all of us, a point relevant to question 29.
I ask the CFTC to support prediction markets with targeted, balanced regulations that address specific risks without shutting down these valuable tools. Let's keep them legal, accessible, and safe for Americans to use.
Sincerely,
Benjamin Glaser
