Comment Text:
Dear Chairman and Commissioners,
My name is Jake McDonald, and I'm a security guard from Iowa. I've been working in this field for years, keeping people and property safe, and in my spare time, I trade on prediction markets like Kalshi. I'm writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516) because I believe these markets are valuable, and I want to see them regulated fairly, not banned or overly restricted.
As someone who uses prediction markets regularly, I value the freedom to participate in a legal, regulated space. Platforms like Kalshi are far safer than the unregulated offshore sites out there. If the CFTC bans or over-restricts these markets, people like me will get pushed to those sketchy platforms with no oversight. Thats not protecting anyone; its just making things worse. Id rather trade on a market where the rules are clear and enforced.
Prediction markets aren't just a hobby for me. They help regular folks and businesses hedge real risks. For example, Ive used them to bet on economic events like inflation numbers because those directly affect my cost of living. If I can offset some of that risk, its a big deal. This isnt gambling, no matter what some might say. Event contracts have a legitimate economic purpose, just like trading stocks or commodities. Calling them "gaming" feels like a cheap shot, and frankly, its like declaring war on something thats fun and useful for no good reason.
I also think the CFTC already has the tools to handle problems like manipulation or insider trading. You dont need to reinvent the wheel or ban entire markets to stop a few bad actors. Just use whats already in place and focus on targeted rules. Banning broad categories punishes everyone, not just the cheaters. Plus, informed trading isnt a bug; its a feature. When people with knowledge trade, the prices get more accurate, and that benefits all of us, even those who dont trade.
Im particularly interested in your questions 7 and 15 from the ANPR, about balancing innovation with consumer protection and defining what counts as gaming. I believe the US should be leading on financial innovation, not letting other countries take the reins. Proportionate regulation that addresses specific risks is the way to go, not heavy-handed restrictions.
I urge you to support well-regulated prediction markets. Dont shut them down or make them impossible for regular people like me to use. Keep them safe, fair, and accessible.
Sincerely,
Jake McDonald
