Comment Text:
Dear Chairman and Commissioners,
My name is David Weber, and I'm a trader and investor based in Oregon. I've been actively trading on prediction markets like Kalshi for a while now, and Im writing to express my strong support for the proportionate regulation of these markets in response to your Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these platforms offer unique value and deserve a fair regulatory framework that allows people like me to participate without being pushed into riskier alternatives.
As someone who trades regularly, Ive seen firsthand how prediction markets provide information you cant get anywhere else. The prices often reflect a clearer picture of whats likely to happen than polls or news commentary. This isnt just helpful for traders; its useful for anyone trying to make sense of uncertain events. I also dont see this as gambling. Trading on Kalshi requires research and judgment, just like trading stocks or futures. Its a skill, not a game of chance. Beyond that, these markets let regular folks like me have a stake in understanding the world, and I think thats a good thing. If only big institutions could participate, all the valuable insights would stay locked up with them.
What I care most about is the freedom to trade in legal, regulated markets. Platforms like Kalshi, which operate under CFTC oversight as a designated contract market, provide a safe and transparent environment. I know my trades are monitored for manipulation, and there are clear rules in place. Compare that to unregulated offshore platforms, where theres no accountability. If the CFTC over-restricts or bans prediction markets, people arent going to stop trading; theyll just move to those shady venues with no protections. Ive seen chatter online about these offshore sites, and Id hate to be forced into that kind of risk just because regulated options were taken away.
Id like to address a couple of your specific questions from the ANPR. On Question 7, regarding balancing innovation and consumer protection, I think the current oversight of platforms like Kalshi already strikes a decent balance. And on Question 29, about inside information, I believe the existing laws against insider trading are enough to handle bad actors without shutting down entire markets. Punishing everyone for the actions of a few doesnt make sense to me.
I urge the CFTC to support a regulatory framework that allows prediction markets to operate with clear, fair rules. Dont ban or overly restrict them. Keep platforms like Kalshi accessible to traders like me, and prevent the shift to unregulated offshore sites. Thank you for considering my perspective.
Sincerely,
David Weber
