Comment Text:
Dear Chairman and Commissioners,
My name is Casey Swalgin, and I'm a software engineer from Maryland. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516) to express my strong support for the proportionate regulation of these markets. As someone who actively trades on platforms like Kalshi, Ive seen firsthand how valuable and legitimate these markets are, and I urge the CFTC to foster their growth rather than restrict them.
For me, prediction markets are a unique way to build wealth by applying my knowledge of sports and other events. It's not just about making a bet; it's about turning my research and insights into something tangible. I treat my trades like shares, which helps me manage risk in a way that feels similar to traditional investing. This isn't gambling in my mind. It takes analysis and judgment, much like picking stocks or futures. Classifying event contracts as "gaming," as discussed in Questions 15-22 of the ANPR, ignores the real economic purpose they serve, like price discovery and risk management. I believe the CFTC should recognize them for what they are: legitimate financial tools.
I also think the United States has a chance to be a leader in financial innovation here. As a tech professional, I see how fast the world moves with new ideas and platforms. If we over-regulate or ban prediction markets, we're just pushing this activity to offshore, unregulated spaces where there's no oversight. Thats worse for everyone. Addressing Questions 7-14 on public interest, Id argue that allowing regulated markets like Kalshi to operate keeps innovation here at home, protects consumers with clear rules, and lets regular people like me participate in a fair system. Why should other countries take the lead on something we can do better and safer?
I get that there are concerns about manipulation or insider trading, as raised in Questions 29-32. But those issues are already illegal, and the CFTC has tools to tackle bad actors without shutting down entire markets. Banning prediction markets to stop a few cheaters would be like closing the stock market over insider trading. It punishes the wrong people. Instead, focus on enforcing the laws we have.
Im asking the CFTC to support the freedom to participate in legal, regulated prediction markets. Please dont impose broad bans or treat these contracts as gaming. Craft rules that address specific risks while letting innovation thrive. Regular folks like me deserve access to these tools, and the US deserves to lead the way.
Sincerely,
Casey Swalgin
