Comment Text:
Dear Chairman and Commissioners,
My name is William, and I'm a student based in Florida. I'm writing to express my strong support for the proportionate regulation of prediction markets, as outlined in your Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). As someone who actively trades on platforms like Kalshi, Ive seen firsthand how these markets provide unique value, and I believe the CFTC has an opportunity to foster innovation while protecting consumers through thoughtful rules.
I got into prediction markets because I wanted a way to engage with real-world events in a meaningful way. As a student, Im always trying to understand complex issues, whether its economic policy or political outcomes. Trading on Kalshi has given me access to information and insights I cant find in polls or news articles. The prices reflect what people actually think, based on their own research and stakes. This isnt just helpful for me, its valuable for society. Better price discovery means better information for everyone, from journalists to policymakers. I think this touches on your questions 7 and 8 about the public interest and how these markets contribute to price discovery.
I also want to stress that event contracts are not gambling. I spend hours reading, analyzing data, and thinking critically before placing a trade, just like I would for any investment. These markets serve real economic purposes, like hedging against uncertainty. Classifying them as gaming, as discussed in questions 15 and 16, would be a mistake. Its not about luck, its about informed decision-making. I urge the CFTC to recognize this distinction and avoid overly restrictive labels.
Another concern I have is the risk of over-regulation or outright bans pushing activity offshore. Ive seen unregulated platforms out there, and theyre far less safe than a CFTC-registered market like Kalshi. If the U.S. clamps down too hard, people like me will still want to participate, but well be forced into riskier, less transparent venues. Thats worse for consumer protection, not better. This ties into questions 9 and 10 about balancing innovation with safety. Regulation is the answer, not prohibition.
Finally, I believe the U.S. should lead in financial innovation. If we stifle prediction markets here, other countries will step in and take the lead. I want my country to be at the forefront, setting the standard for how these markets can work safely and effectively. This relates to the broader public interest themes in your ANPR.
I respectfully ask the CFTC to support well-regulated prediction markets with rules that address specific risks without broad bans or over-restrictions. Lets keep these markets accessible to everyday people like me, while ensuring they remain safe and transparent. Thank you for considering my perspective.
Sincerely,
William
