Comment Text:
Dear Chairman and Commissioners,
My name is Richard Lippin, and I'm a healthcare professional from Pennsylvania. I'm writing to provide my input on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've used prediction markets a few times myself, and I strongly support their continued availability under fair, well-thought-out regulation by the CFTC.
As someone who works in healthcare, I value having access to unique sources of information. Prediction markets give me a way to gauge outcomes that could impact my field, like policy changes or economic shifts. They aren't just a game, they're a tool. I've placed a few trades on platforms like Kalshi, and I appreciate that it's a regulated space where I can participate legally and safely. Shutting down or over-restricting these markets would likely push activity to unregulated offshore platforms, which are far riskier for people like me who just want to engage in a legitimate way. I don't want to be forced to choose between sketchy overseas sites and nothing at all.
I also believe the CFTC already has the tools to handle concerns like manipulation or insider trading. I've read about your existing authority to go after bad actors in other derivative markets, and I think those same powers can apply here. There's no need for broad bans when you can target specific problems. Banning entire categories of event contracts feels like overkill, and it punishes regular folks who use these markets responsibly. Proportionate regulation, focused on real risks, makes a lot more sense to me.
On a bigger scale, I think the US should be leading the way on financial innovation. If we clamp down too hard on prediction markets, other countries will step in and take the lead. We shouldn't cede that ground. I'm particularly drawn to your questions 7 and 8 in the ANPR about balancing innovation with consumer protection. My view is simple: protect users like me by regulating smartly, not by shutting things down.
I'm asking you to support proportionate regulation of prediction markets. Keep platforms like Kalshi accessible under clear rules, enforce the laws against manipulation and insider trading that you already have, and don't push activity offshore with overly restrictive policies. Thank you for considering my perspective as you shape these rules.
Sincerely,
Richard Lippin
