Comment Text:
Dear Chairman and Commissioners,
My name is Philip LeGrier, and Im a trader and investor from Georgia. Im writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. Im relatively new to prediction markets, but Ive already seen their value firsthand through platforms like Kalshi, and I strongly support their continued operation under fair and proportionate regulation.
Ill be honest, Im not a fan of sports betting or gambling. I dont see prediction markets as gambling, though. Trading on Kalshi has been engaging, even fun, but its not a game of chance. It takes research and judgment, much like trading stocks or commodities. I recently made a small profit on a contract tied to an economic indicator, and it felt like a reward for paying attention to real-world data, not luck. Classifying these event contracts as gaming would be a mistake, as they serve real economic purposes like price discovery and hedging. I urge you to consider this distinction when addressing questions 15 through 22 in the ANPR about listed activities and the definition of gaming.
I also believe in the freedom to participate in legal, regulated markets. Platforms like Kalshi, which operate under CFTC oversight, are far safer than unregulated offshore alternatives. If heavy restrictions or bans are imposed, people like me will be pushed toward less secure venues with no consumer protections. Thats a worse outcome for everyone. On this point, I think your questions 7 through 14 on public interest are critical, and I hope youll prioritize balancing innovation with protection in a way that keeps these markets accessible.
Finally, Im concerned about the U.S. staying competitive in financial innovation. Prediction markets are a growing field, and if we over-regulate or shut them down, other countries will step in and take the lead. We should be setting the standard, not falling behind. I think this ties directly to the broader cost-benefit considerations in questions 33 through 40 of the ANPR, and I encourage you to weigh the long-term impact on U.S. leadership in this space.
I understand there are risks, like potential manipulation or insider trading. But the CFTC already has tools to address those issues in other markets, and I believe you can adapt them here without resorting to broad bans. Please support proportionate regulation of prediction markets that allows regular traders like me to participate in a safe, legal environment. Dont over-restrict or ban these valuable tools.
Thank you for considering my input.
Sincerely,
Philip LeGrier
