Comment Text:
Dear Chairman and Commissioners,
My name is Jorge Alvarado, and Im a small business owner from California. I run a transport company, hauling equipment for carnivals and construction sites across the state. Long hours on the road in my big rig give me plenty of time to listen to sports radio, keeping up with my favorite teams. One day, I hope to retire and just watch games all day. Im writing to you about the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516) because I actively trade on platforms like Kalshi, and I strongly support well-regulated prediction markets.
For me, prediction markets arent just a pastime. Theyre a tool. I use them to hedge risks that affect my business, like fuel price swings tied to economic data or policy changes from elections. When Im hauling gear, I cant afford surprises, and the prices on these markets give me better insight than any news pundit or poll Ive come across. Ive seen firsthand how prediction markets often predict outcomes, like election results, more accurately than so-called experts. That kind of information isnt just useful to me, its valuable to everyone, from regular folks to policymakers. Plus, trading on these platforms takes real research and judgment, just like investing in stocks. Its not gambling, no matter what some might say. Its a legitimate way to manage risk and make informed bets on the world.
I also believe regular people like me should have the freedom to participate in legal, regulated markets. If only big institutions can trade, all that valuable info stays locked up with them. Platforms like Kalshi, under CFTC oversight, are far safer than unregulated offshore sites. If you ban or over-restrict these markets, youll just push people like me to less safe options. And honestly, as someone who loves sports, I think its wrong to cut regular fans out of a chance to engage financially with their passion. Lifes already hard enough. If players are betting, thats an issue for their leagues to handle, not a reason to shut down markets for the rest of us.
I want to address a few of your specific questions from the ANPR. On Questions 7-14 about public interest, I think prediction markets balance innovation with consumer protection when theyre regulated properly, as they are now. For Questions 15-22 on listed activities, I urge you not to classify event contracts as gaming. They serve real economic purposes, like hedging and price discovery. And on Questions 29-32 about inside information, I believe informed trading actually improves price accuracy for everyone. The CFTC already has strong tools to tackle manipulation and insider trading, so lets use those instead of broad bans.
The U.S. should be leading in financial innovation, not falling behind other countries. I ask you to support proportionate, targeted regulation for prediction markets. Dont ban or over-restrict them. Keep them safe and accessible for people like me.
Sincerely,
Jorge Alvarado
