Comment Text:
Dear Chairman and Commissioners,
My name is Austin Reichel, and I'm just a regular citizen from Wisconsin writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've been actively trading on platforms like Kalshi for a while now, and I strongly support the idea of well-regulated prediction markets. I believe they provide value to people like me and to society as a whole, and I hope the CFTC will create rules that allow these markets to thrive without over-restricting them.
As someone who trades on Kalshi, I value the freedom to participate in legal, regulated markets. These platforms aren't just a hobby for me. They give me a way to engage with real-world events and make informed decisions based on research and judgment. More importantly, the prices on these markets often provide better information than polls or pundits. I've seen firsthand how prediction markets can cut through noise and offer clearer insights on things like election outcomes or economic indicators. That kind of price discovery isn't just useful for traders, it helps everyone, from regular folks to policymakers, make better decisions.
I'm also worried about what happens if these markets get overly restricted. Regulated platforms like Kalshi are transparent and safe, with oversight to protect users. If the CFTC clamps down too hard, people will just turn to unregulated offshore platforms with no protections. That seems like a step backward. I'd much rather see the CFTC focus on keeping regulated markets strong and accessible.
I know there are concerns about manipulation or insider trading, and I get that. But the CFTC already has solid tools to tackle those issues in other derivatives markets. Why not adapt those same rules here instead of broad bans? I also think informed trading actually helps. When people with knowledge participate, the prices get more accurate, and that benefits all of us. It's not something to punish, it's a feature of these markets.
Looking at some of the specific questions in the ANPR, I want to address a few points. On Question 7, about balancing innovation and consumer protection, I think proportionate regulation is the way to go. Don't ban whole categories of contracts, just target the specific risks. And on Question 29, about inside information, I believe informed traders improve price discovery as long as existing laws against insider trading are enforced.
I urge the CFTC to support prediction markets with fair, targeted rules that let regular people like me keep participating. Please don't over-restrict or ban these markets. They provide unique value, and with the right oversight, they can grow safely.
Thank you for considering my input.
Sincerely,
Austin Reichel
