Comment Text:
Dear Chairman and Commissioners,
My name is Cole Pierce, and I'm a regular citizen from Colorado writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I've been actively trading on platforms like Kalshi for a while now, and I strongly support the idea of well-regulated prediction markets. I believe they provide real value, and I want to urge the CFTC to regulate them in a fair and balanced way, not ban or overly restrict them.
As someone who isn't a financial expert or big investor, I value the chance to participate in legal, regulated markets like Kalshi. These platforms let me engage with events that affect my life, like economic policies or election outcomes, in a way that feels meaningful. I do my research and make informed decisions, just like I would with any other investment. But what really matters to me is that these markets are regulated here in the US. I've seen unregulated offshore platforms out there, and they don't offer the same protections or transparency. If the CFTC over-restricts or bans prediction markets, I worry that people like me will be pushed to those less safe venues. That would be a step backward for consumer protection, not forward.
I also believe the CFTC already has the tools it needs to handle issues like manipulation or insider trading. I've read about the laws and powers you have to go after bad actors in other markets, like stocks or commodities. Those same tools can work for prediction markets. Instead of broad bans on entire categories of contracts, I think targeted rules addressing specific risks make more sense. For example, focusing on enforcement against manipulation rather than shutting down markets altogether would protect people like me who trade in good faith.
I'd like to touch on a couple of the questions in your ANPR. On Question 7, about balancing innovation and consumer protection, I think regulated markets strike that balance by keeping activity under CFTC oversight while still allowing new ideas to grow. And on Question 23, about when public interest determinations should happen, I believe the focus should be on ensuring fair access for everyday traders, not just big players, through clear and consistent rules.
Prediction markets aren't just a hobby for me; they're a way to understand and engage with the world. I ask that the CFTC support proportionate regulation that keeps these markets safe and accessible without pushing activity offshore or punishing regular people who want to participate. Thank you for considering my perspective.
Sincerely,
Cole Pierce
