Comment Text:
Dear Chairman and Commissioners,
My name is Shavan Brown, and I'm just a regular citizen from Massachusetts 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 for a while now, and I believe these markets are valuable and shouldn't be over-restricted or banned. I appreciate the chance to weigh in on how they should be regulated.
I support prediction markets because they give me, and people like me, access to information you can't find anywhere else. I've seen firsthand how their forecasts often beat out polls or pundits when it comes to predicting elections or economic shifts. That kind of insight isn't just helpful for traders; it's useful for everyone, from regular folks making decisions to policymakers figuring out what's next. Plus, trading on these platforms isn't gambling. It takes research and real-world judgment, just like investing in stocks. Classifying event contracts as "gaming" feels wrong when they serve legitimate purposes like price discovery and helping people hedge risks.
Another thing I care about is keeping these markets legal and regulated here in the US. Platforms like Kalshi, under CFTC oversight, are safe and transparent. If we ban or over-restrict them, people won't just stop trading. They'll move to unregulated offshore sites where there's no protection at all. I've traded enough to know I'd rather stay on a platform that's watched by regulators than take my chances somewhere sketchy. The US should be leading the way on financial innovation, not pushing it overseas by making things too tough here.
I also want to touch on some of the specific questions in the ANPR. For instance, on Question 7 about balancing innovation and consumer protection, I think the answer is proportionate regulation. Don't throw out whole categories of contracts; focus on specific risks like manipulation with targeted rules. And for Question 15 on defining gaming versus legitimate markets, I strongly believe event contracts aren't gambling. They're tools for understanding the world and managing uncertainty, not just games of chance.
I'm not blind to the concerns about insider trading or manipulation, but those are already illegal. The CFTC has the power to go after bad actors without shutting down entire markets. Banning prediction markets to stop a few cheaters would punish everyone else who uses them responsibly, like me.
I urge you to support well-regulated prediction markets with fair, targeted rules. Don't ban them or make the barriers so high that only big players can participate. Let regular people like me keep accessing these tools legally and safely under your oversight. Thank you for considering my perspective.
Sincerely,
Shavan Brown
