Comment Text:
Dear Chairman and Commissioners,
My name is Juan Clara, and I'm just a regular guy from California writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I'm not a lawyer or a financial expert, just someone who cares about having the freedom to participate in legal, regulated markets. I've been trading on platforms like Kalshi for a while now, and I want to explain why I think prediction markets are valuable and why regulating them properly matters to people like me.
I started using prediction markets because they give me a way to engage with the world around me, from elections to economic events, in a way that feels meaningful. It's not gambling to me. I do my homework, read up on the issues, and make decisions based on what I think is most likely to happen. The information I get from market prices often feels more reliable than what I hear from news pundits or polls. It's like a crowd-sourced truth that helps me make sense of things. Plus, I can hedge against stuff that affects my life, like inflation numbers impacting my budget. I think this kind of access shouldn't be limited to big institutions. Regular folks like me should have a chance to participate too.
What really worries me, though, is the idea of over-restricting or banning these markets. I've seen unregulated offshore platforms out there, and they're a mess. No oversight, no protections, just a Wild West vibe. I stick to regulated platforms like Kalshi because I trust that the CFTC is watching out for manipulation or fraud. If you crack down too hard on legitimate markets, people will just go to those shady sites instead. Thats not safer for anyone. I'd rather see the CFTC focus on keeping regulated markets strong and accessible.
Looking at some of the questions in the ANPR, I want to speak to Question 7 about balancing innovation and consumer protection. I think you can do both by supporting platforms that follow the rules, not by shutting them down. And for Question 29 on insider trading, I get the concern, but isnt that already illegal? The CFTC has tools to catch bad actors without punishing the rest of us.
I hope youll consider my perspective as an everyday trader. Prediction markets are a tool I value, and I want to keep using them in a safe, regulated space. Please support proportionate regulations that protect consumers without banning or overly restricting these markets.
Sincerely,
Juan Clara
