Comment Text:
Dear Chairman and Commissioners,
My name is Crista Nix, and Im a trader and investor based in South Carolina. Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). Ive been actively trading on regulated prediction markets like Kalshi for a while now, and I strongly support the CFTC developing proportionate regulations for these markets rather than imposing bans or overly restrictive rules.
As a trader, Ive seen firsthand how prediction markets provide information you cant get anywhere else. Their forecasts are often more accurate than polls or pundits, which helps me make better decisions, not just in trading but in understanding the world around me. This isnt just useful for people like me; its valuable for the public, media, and even policymakers who need reliable data for decision-making. I also believe these markets serve a real economic purpose, like hedging risks. For instance, Ive used them to offset uncertainties tied to economic policies that could impact my investments. This isnt gambling. It takes research and judgment, just like trading stocks or commodities. Classifying event contracts as gaming feels like a misstep to me.
Im also concerned about what happens if these markets get over-regulated or banned. Right now, platforms like Kalshi operate under CFTC oversight, which offers consumer protection and transparency. If you push too hard with restrictions, activity will just move to unregulated offshore platforms where theres no accountability. Id much rather trade in a safe, regulated environment here in the US. Plus, the US should be leading in financial innovation, not handing that advantage to other countries. Weve got a chance to set the standard, and I hope we take it.
I want to address a couple of specific questions from the ANPR. On Question 7, about balancing innovation and consumer protection, I think regulated markets already strike that balance by keeping trading transparent and monitored while allowing new ideas to flourish. On Question 29, regarding informed traders, I believe they improve price discovery. Their knowledge makes the markets predictions sharper, which benefits everyone, not just those trading. And lets not forget, the CFTC already has strong tools to tackle manipulation and insider trading in other derivatives markets. Those can work here too, without needing broad bans.
I understand there are concerns about bad actors or misuse, but punishing everyone by shutting down or over-restricting prediction markets isnt the answer. Focus on targeted rules for specific risks instead. I urge you to support well-regulated prediction markets that allow everyday traders like me to participate in legal, transparent platforms. Lets keep this innovation alive in the US, under your oversight, where its safest for all of us.
Thank you for considering my input.
Sincerely,
Crista Nix
