Comment Text:
Dear Chairman and Commissioners,
My name is TJ Klausing, and I'm a small business owner from Ohio. I'm writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I strongly support the idea of well-regulated prediction markets, and I want to share my perspective as someone who has used these platforms and values the freedom to participate in legal, safe markets.
I've used prediction markets a few times, mostly out of curiosity and to get a sense of what people are thinking about big events. I find the information they provide fascinating, often more reliable than what you hear from talking heads on TV or even some polls. For instance, Ive been wanting someone to create a market on something quirky like whether UFOs will land during UFC 250. It sounds odd, but it's the kind of thing that gets people talking and thinking about probabilities and evidence. As a business owner, I also see real value in these markets for hedging risks tied to economic or political events that could impact my operations, like changes in policy or inflation numbers.
What I care about most is keeping these markets legal and regulated here in the U.S. Platforms like Kalshi, which operate under CFTC oversight, are a much safer bet than unregulated offshore sites. If you push too hard with restrictions or bans, people like me will just go elsewhere, to places with no rules or protections. Thats not good for anyone. Regulated markets mean transparency, accountability, and a way to address fraud or manipulation if it happens. I dont want to lose access to a tool thats both useful and fair because of overregulation.
I also want to touch on a concern I know the CFTC has, like in Questions 7 and 8 from your ANPR about balancing innovation with consumer protection. I get that theres a risk of bad actors or insider trading, but those issues are already illegal under existing laws. The CFTC has the power to go after manipulation in any market, and that should apply here too. Shutting down or overly restricting prediction markets to stop a few cheaters would punish the rest of us who use them responsibly.
Im not saying there shouldnt be rules. I just think they need to be fair and targeted. Focus on enforcing the laws already on the books instead of broad bans. Please support proportionate regulation of prediction markets that lets regular people like me participate in a safe, legal environment without driving activity to sketchy offshore platforms.
Thank you for considering my input.
Sincerely,
TJ Klausing
