Comment Text:
Dear Chairman and Commissioners,
My name is Coryyon Moore, and I'm a trader and investor based in North Carolina. I've been actively trading on prediction markets like Kalshi for a while now, and I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I strongly support the development of well-regulated prediction markets in the United States, and I want to share my perspective as someone who uses these platforms regularly.
Prediction markets aren't just a niche hobby for me. They provide unique information and insights that I can't find anywhere else, whether it's about election outcomes or economic indicators. I've seen firsthand how the aggregated data from these markets often outperforms traditional polls or expert opinions. As someone who values data transparency, I also appreciate the academic research backing this up. Studies by economists like Hanson and Wolfers show how prediction markets efficiently aggregate information, benefiting not just traders like me but also the broader public and policymakers who rely on accurate forecasts.
What concerns me, though, is the risk of over-restriction or outright bans on these markets. I trade on Kalshi because it's a regulated platform under the CFTC's oversight, which gives me confidence that there are safeguards against manipulation and fraud. If the U.S. clamps down too hard on prediction markets, I worry that activity will just move to unregulated offshore platforms. I've seen those sites out there, and they lack the transparency and protections of a regulated market like Kalshi. Pushing traders like me to those venues doesn't protect anyone; it just creates more risk.
On top of that, I believe the U.S. should be a leader in financial innovation. Prediction markets are a cutting-edge tool for price discovery and risk management. If we over-regulate or ban them, we're handing the advantage to other countries that are more open to these technologies. As a trader, I want the U.S. to be the place where these markets grow under smart, balanced rules, not a place that drives innovation away.
I'd like to address a couple of specific questions from the ANPR. Regarding Question 7 on balancing innovation and consumer protection, I think the CFTC can achieve both by focusing on targeted rules for manipulation and insider trading rather than broad restrictions. And for Question 14 on whether regulated markets are preferable, my answer is a clear yes. Regulated platforms like Kalshi are far safer than the alternatives.
I understand there are legitimate concerns about manipulation or insider trading, but the CFTC already has tools to address these issues in other markets. Apply those same tools here. Don't punish the majority of honest traders by limiting access to these valuable markets. I'm asking you to support proportionate regulation that allows prediction markets to thrive while addressing specific risks with focused solutions.
Thank you for considering my input.
Sincerely,
Coryyon Moore
