Comment Text:
Dear Chairman and Commissioners,
My name is Jes Privacy, and I'm a trader and investor from Missouri. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on platforms like Kalshi, and I strongly support the development of well-regulated prediction markets. I want to share why these markets matter to me and why I believe the CFTC should encourage their growth with fair, proportionate rules.
As a trader, I'm always looking for new investment avenues to diversify my portfolio and manage risk. Prediction markets offer something unique: a chance to engage with real-world events and outcomes in a way that traditional markets don't always capture. I value the freedom to participate in legal, regulated platforms like Kalshi, where I can trade on everything from election outcomes to economic indicators. This isn't just about making a profit. It's about having access to information and forecasts that I can't get anywhere else. I've seen firsthand how prediction markets often outperform polls or pundits in predicting results. For instance, during the last election cycle, the odds on Kalshi gave me a clearer picture of what might happen than any news outlet or survey I followed. That kind of insight is valuable to me as an investor, and I believe it benefits society as a whole when more people can access it.
I also worry that if the U.S. doesn't embrace these markets, we'll fall behind. Other countries are already exploring ways to integrate prediction markets into their financial systems. If we over-regulate or restrict them here, we're ceding leadership in financial innovation to others. I don't want to see that happen. The U.S. should be at the forefront, setting the standard for how these markets can operate safely and effectively.
Regarding some of the specific questions in the ANPR, I want to address Question 7 on balancing innovation with consumer protection. I understand the concern about potential risks like manipulation or insider trading. But those issues already have legal protections in place under existing CFTC authority. Banning or overly restricting prediction markets doesn't solve those problems; it just pushes activity to unregulated offshore platforms where there's no oversight at all. Instead, let's focus on targeted rules that address specific risks while still allowing regular folks like me to participate.
I'm asking the CFTC to support proportionate regulation of prediction markets. Don't ban broad categories of contracts or impose rules so strict that only big institutions can play. Keep the door open for individual traders and investors to engage in these markets under clear, fair guidelines. Prediction markets are a powerful tool for forecasting and risk management, and I believe they deserve a place in our financial system.
Thank you for considering my perspective.
Sincerely,
Jes Privacy
