Comment Text:
Dear Chairman and Commissioners,
My name is Qj Donald, and I'm a trader and investor based in Louisiana. I've been actively trading on prediction markets like Kalshi for a while now, and Im writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I strongly support the idea of well-regulated prediction markets, and I hope the CFTC will craft rules that allow these markets to thrive while addressing legitimate concerns.
As someone who trades regularly, Ive seen firsthand how prediction markets offer unique value. They provide information and insights you just cant get from polls or news pundits. I use these markets to hedge personal and business financial risks, like protecting against policy changes or economic shifts that could impact my investments. For example, Ive traded contracts tied to interest rate decisions to offset risks tied to loans and other financial moves. This isnt gambling to me; its a practical tool that takes research and real-world judgment, much like trading stocks or commodities.
I also believe the U.S. has a chance to be a leader in financial innovation here. Prediction markets are growing fast, and if we over-restrict them, we risk pushing this cutting-edge industry to other countries. I dont want to see offshore, unregulated platforms become the only option for traders like me. Regulated markets like Kalshi, under the CFTCs oversight, are a safer and better way to keep this innovation at home. We can set the global standard if we get this right.
I know there are worries about things like insider trading or market manipulation, and I get that. But those issues are already illegal under existing laws, and the CFTC has the authority to crack down on bad actors. Shutting down or overly restricting prediction markets to stop a few cheaters feels like punishing everyone else. Instead, I think the focus should be on using the tools you already have and crafting targeted rules to handle specific risks.
Id like to address a couple of the questions in the ANPR directly. On Question 7, regarding balancing innovation and consumer protection, I think regulated prediction markets strike that balance by giving everyday people access to valuable tools while keeping oversight in place. And on Question 15, about defining gaming versus legitimate markets, Id argue that event contracts used for hedging, like I do, are clearly distinct from gambling and serve a real economic purpose.
I urge the CFTC to support proportionate regulation of prediction markets. Dont ban or over-restrict them. Lets build a framework that encourages innovation, protects participants, and keeps the U.S. at the forefront of this space. Thank you for considering my input.
Sincerely,
Qj Donald
