Comment Text:
Dear Chairman and Commissioners,
My name is Le St, and I'm an everyday citizen from New York writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on regulated prediction markets like Kalshi, and I strongly support the CFTC crafting fair, proportionate regulations for these markets rather than imposing heavy restrictions or outright bans.
I first got into prediction markets because I wanted a way to hedge personal financial risks. For example, I run a small side business, and election outcomes or changes in federal policy can directly impact my costs and planning. Trading on Kalshi lets me offset some of that uncertainty, whether it's a tax policy shift or a new regulation that might hit my bottom line. This isn't gambling to me. It takes research and real-world judgment, just like any other investment. Classifying event contracts as "gaming" feels wrong when they serve a clear economic purpose for people like me. I urge you to consider this in your response to questions 15 through 22 on listed activities and avoid labeling these contracts as gambling.
I also believe regulated markets are far safer than the alternative. If platforms like Kalshi face overly strict rules or bans, people won't just stop trading. They'll move to unregulated offshore sites with no oversight, no consumer protections, and no accountability. I've seen friends tempted by those platforms, and I worry about them getting scammed or losing money with no recourse. Keeping prediction markets regulated under the CFTC, as discussed in questions 7 through 14 on public interest, ensures transparency and safety for everyday traders like me while still allowing innovation. The US should be leading in financial tools like this, not pushing them overseas to other countries.
Finally, I want to stress that broad categorical bans aren't the answer. Targeted rules to tackle specific risks like manipulation or insider trading make more sense. The CFTC already has tools to address bad actors, and I trust you can adapt those for prediction markets without punishing the rest of us. This ties into questions 1 through 6 on core principles and questions 33 through 40 on classification and costs. Please focus on proportionate regulation that lets regular citizens participate in legal, regulated markets without excessive burdens.
Prediction markets give me a voice and a way to manage real risks. I ask that you support balanced rules that protect consumers while preserving access to these valuable tools. Thank you for considering my perspective.
Sincerely,
Le St
