Comment Text:
Dear Chairman and Commissioners,
My name is Alex Gonzales, and I'm just a regular citizen from Texas 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, and I believe these markets are valuable and should be regulated in a fair, balanced way. I'm not a financial expert or anything, just someone who sees the good these markets can do for people like me and for the country as a whole.
I think prediction markets are important because they bring people together at a time when we really need that here in the USA. Trading on events, especially elections and public issues, gets folks talking and thinking about what's happening in the world. I've noticed that the forecasts on these platforms are often way more accurate than polls or pundits on TV. That better information helps everyone, not just traders, make smarter decisions. It's like a public service, honestly, giving us real data we can't get anywhere else.
I'm also a big believer in the freedom to participate in legal, regulated markets. Platforms like Kalshi, which operate under CFTC oversight, are so much safer than the unregulated offshore sites out there. If we ban or over-restrict these markets, people aren't going to stop trading; they'll just go to sketchy platforms with no protections. That seems like the opposite of what we want. Plus, the CFTC already has strong tools to stop manipulation and insider trading. I trust you can use those tools without shutting down the whole system.
One thing that bugs me is when people call these event contracts "gaming." They're not gambling. Trading on prediction markets takes research and judgment, just like investing in stocks. They serve real purposes, like helping people hedge risks or discover accurate prices for events that affect our lives. And let's not forget the US should be leading in financial innovation. We shouldn't let other countries take the lead because we're too scared to regulate properly.
I'd like to touch on a couple of your questions from the ANPR. On Questions 7 to 14 about public interest, I think prediction markets clearly benefit the public through better forecasting and price discovery. Informed trading, as asked in Questions 29 to 32, actually improves that accuracy and helps everyone, not just a few insiders. We shouldn't punish all traders for the actions of a few bad actors.
I'm asking you to support proportionate regulation of prediction markets. Don't ban them or over-restrict them. Keep platforms like Kalshi open and safe for regular folks like me to participate in. Let's keep the US at the forefront of this innovation while protecting consumers with the tools you already have.
Thank you for considering my input.
Sincerely,
Alex Gonzales
