Comment Text:
Dear Chairman and Commissioners,
My name is Christian Klein, and I'm a student from Pennsylvania 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 regulated prediction markets like Kalshi for a while now, and I believe these platforms offer real value when properly overseen. I'm grateful for the chance to comment on how the CFTC can approach this growing space.
As a student, I value the freedom to participate in legal, regulated markets like Kalshi. These platforms aren't just a way to engage with current events; they help me learn about economics, politics, and risk in a hands-on way. The information I get from market prices often feels more reliable than what I see in polls or news, and I think that's a public good worth protecting. But I also understand the need for guardrails. That's why I strongly support regulation that keeps these markets safe and transparent, rather than driving activity to sketchy offshore platforms where theres no oversight at all. I've seen friends mess around on unregulated sites, and its a mess, with no protections if something goes wrong. Regulated markets under the CFTC's watch are far safer for people like me.
I do have a concern, though. While I believe in the value of prediction markets, I think they can be risky for younger people who might not fully grasp the implications. Id suggest an age limit of 21 to participate, since these platforms can sometimes feel like casinos to those who aren't mature enough to approach them seriously. Treating them with the same caution as gambling in terms of access makes sense to me, even if I don't see them as gambling myself. Regulation should focus on protecting vulnerable users while still allowing responsible participation.
Looking at some of the questions in the ANPR, I want to address a couple from the Public Interest section, like Question 7 on balancing innovation and consumer protection. I think the CFTC can strike that balance by enforcing strong rules against manipulation and fraud, while not shutting down access for everyday traders. Also, on Question 12 about offshore alternatives, I cant stress enough that banning or over-restricting these markets here will just push people like me to unregulated sites with zero accountability. Keep us in a system you can monitor.
I urge the CFTC to support proportionate regulation of prediction markets. Dont ban or overly restrict them. Focus on rules that protect consumers and ensure fair play, so platforms like Kalshi can thrive as safe spaces for learning and engagement. Thank you for considering my perspective.
Sincerely,
Christian Klein
