Comment Text:
Dear Chairman and Commissioners,
My name is Glenn Woodhouse, and I'm a trader and investor based in Wyoming. I've spent years navigating financial markets, making decisions based on research and judgment, and I've used prediction markets a few times to inform my thinking and manage risks. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516) to urge the CFTC to support proportionate, well-regulated prediction markets rather than imposing overly restrictive rules or outright bans.
As someone who values the freedom to participate in legal, regulated markets, I see prediction markets as a powerful tool. They provide unique information that I can't get from polls or news pundits, and they've helped me hedge personal and business financial risks tied to events like elections or policy changes. For example, I've used these markets to gauge potential tax or regulatory shifts that could impact my investments. This isn't gambling; it's a calculated approach to managing uncertainty, much like trading stocks or commodities.
I strongly believe that regulated platforms like Kalshi, operating under CFTC oversight as a designated contract market, are far safer than unregulated offshore alternatives. If the CFTC over-restricts or bans these markets, people like me won't just stop participating. We'll be pushed to less transparent, less accountable platforms outside U.S. jurisdiction, where there's no oversight at all. That's a worse outcome for everyone. The U.S. should be leading in financial innovation, not ceding ground to other countries that are more willing to embrace these tools.
I'm also confident that the CFTC already has robust tools to address concerns like manipulation and insider trading. I've seen how the agency polices other derivatives markets, and those same mechanisms can work here. Banning entire categories of event contracts to stop a few bad actors feels like using a sledgehammer to crack a walnut. Targeted rules addressing specific risks make more sense than broad prohibitions. Id like to reference Questions 7 and 8 from the ANPR under the Public Interest section. Prediction markets do serve the public good by offering price discovery and risk management, and the CFTC can balance innovation with consumer protection by focusing on enforcement of existing laws rather than restrictive new rules.
Ive also considered Questions 29 and 30 regarding inside information. While theres always a risk of misuse, informed traders often improve price accuracy, benefiting everyone. The answer isnt to shut down markets but to enforce the laws already in place against insider trading.
I urge the CFTC to regulate prediction markets in a way that allows regular traders like me to participate legally and safely. Dont push this activity offshore with heavy-handed restrictions. Support proportionate regulation that keeps the U.S. at the forefront of financial innovation.
Thank you for considering my input.
Sincerely,
Glenn Woodhouse
