Comment Text:
Dear Chairman and Commissioners,
My name is Talon Woods, and I'm just a regular 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've been trading on platforms like Kalshi for a while now, and I feel strongly that prediction markets should be supported with fair, balanced regulation instead of heavy restrictions or outright bans.
I got into prediction markets because they give me a way to engage with real-world events in a meaningful way. Whether it's an election outcome that might affect my taxes or a Federal Reserve decision that could impact my cost of living, trading on these markets helps me hedge against uncertainty. It's not gambling to me. It takes research and thought, just like any other kind of investing. Plus, the information these markets provide, like aggregated predictions that often beat polls, is valuable to everyone, not just traders. I think allowing everyday people like me to participate makes the system fairer and the data better.
What worries me most is the idea of banning or over-restricting these markets. I've seen what happens when things get pushed underground. If regulated platforms like Kalshi, which operate under CFTC oversight, are shut down or limited, people won't just stop trading. They'll go to unregulated offshore sites instead. Those places have no consumer protections, no accountability, and no way to ensure fair play. I've traded on Kalshi because I trust that it's a legal, monitored space. If that option disappears, the alternative isn't safety. It's riskier, shadier platforms where I have no recourse if something goes wrong.
I'm also aware of the concerns around manipulation or insider trading, and I get why those are issues. But the CFTC already has tools to address fraud and manipulation in other markets. I believe those same tools can work here without punishing regular traders like me. In response to some of your questions, particularly in Topic Area B on public interest (Questions 7-14), I urge you to prioritize consumer protection through strong oversight rather than broad prohibitions. And on Topic Area E regarding inside information (Questions 29-32), I think the focus should be on enforcing existing laws against insider trading rather than limiting access for everyone.
I hope you'll consider my perspective as a regular person who values the freedom to participate in legal, regulated markets. Please support proportionate rules that keep prediction markets accessible and safe under CFTC supervision, instead of driving activity to dangerous offshore alternatives. Thank you for taking the time to read my comment.
Sincerely,
Talon Woods
