Comment Text:
Dear Chairman and Commissioners,
My name is Elliot Brown, and I'm just a regular guy from Georgia working in the solar industry. I don't use prediction markets often, but I've dabbled a few times on platforms like Kalshi. I'm writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). Honestly, I have mixed feelings, but I think the CFTC should regulate these markets properly instead of letting them run wild or pushing them offshore.
I've seen firsthand how destructive unchecked systems can be for my peers and fellow citizens in other industries. People get sucked into speculative stuff without guardrails, and it hurts them. That's why I'm all for consumer protection through strong regulation. If the CFTC sets clear rules, it keeps folks safer than if these markets just move to unregulated offshore platforms where there's no oversight at all. I'd rather see the US take the lead on this kind of financial innovation. If we don't, other countries will step in, and we'll lose control over how these markets impact our people. We should be setting the standard, not playing catch-up.
That said, I'm not a fan of the prediction market industry as a whole. Platforms like Kalshi seem to generate way more revenue than the actual value they provide to society. I haven't lost money myself, but I can't help seeing this space as kind of parasitic. It feels like it preys on people's hopes and guesses more than it builds anything useful. I'd much rather see folks invest in productive systems, like renewable energy, that create real jobs and benefits. I hope and pray this industry either reforms or fades so people put their money into something better. Thanks for listening to a regular citizen's take on this.
I want to touch on a couple of specific questions from your ANPR. On Question 7, about balancing innovation and consumer protection, I think protection has to come first. Set firm rules to stop scams and manipulation, then let innovation happen within those lines. And for Question 14, comparing these markets to insurance, I don't see them as the same. Insurance helps people recover from loss; prediction markets just seem like betting on outcomes, often with no real safety net.
In closing, I urge the CFTC to regulate prediction markets with a heavy focus on protecting everyday people like me and my neighbors. Don't let these platforms turn into a free-for-all, but don't ban them outright either. Find a middle ground that keeps the US in the driver's seat on financial innovation. I appreciate you taking the time to read my perspective.
Sincerely,
Elliot Brown
