Comment Text:
Dear Chairman and Commissioners,
My name is Christopher Acholonu, and I'm a trader and investor based in California. I've been actively trading on prediction markets like Kalshi for a while now, and Im writing to share my support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these markets provide real value to people like me and to society as a whole, and I urge the CFTC to adopt proportionate regulations rather than overly restrictive bans.
As a trader, Ive seen firsthand how prediction markets offer insights you cant get from polls or pundits. The prices on platforms like Kalshi often predict outcomes more accurately, whether its an election result or an economic indicator. This isnt just helpful for traders; its valuable information for anyone paying attention, from journalists to policymakers. I also use these markets to hedge risks that affect my investments, like policy changes or economic data releases. This isnt gambling. It takes research and judgment, just like trading stocks or commodities. Classifying event contracts as gaming ignores their legitimate economic purpose, and I hope the CFTC recognizes this when addressing questions 15-22 in the ANPR about listed activities.
Im also concerned about what happens if these markets are over-restricted or banned. Regulated platforms like Kalshi, operating under CFTC oversight, are transparent and safe. If you push too hard with restrictions, activity will just move to unregulated offshore platforms where theres no oversight at all. Thats worse for everyone. The US should be leading in financial innovation, not ceding ground to other countries. I think this ties directly to questions 7-14 in the ANPR about balancing innovation and consumer protection. Regulation should keep markets fair, not kill them off.
On the issue of manipulation or insider trading, I believe the CFTC already has strong tools to handle bad actors. Laws against market manipulation and insider trading apply here just as they do in other markets. Banning entire categories of contracts to stop a few cheaters punishes honest participants like me. Plus, informed trading often improves price discovery, making the market more accurate for everyone. This connects to questions 29-32 in the ANPR about inside information, and I think the focus should be on enforcing existing rules, not creating broad prohibitions.
Im asking the CFTC to regulate prediction markets in a targeted way. Address specific risks without sweeping bans. Keep platforms like Kalshi accessible to everyday traders while ensuring fairness. Proportionate regulation will protect consumers, encourage innovation, and keep the US at the forefront of financial markets.
Thank you for considering my perspective.
Sincerely,
Christopher Acholonu
