Comment Text:
Dear Chairman and Commissioners,
My name is Jonathan Beverley, and Im a trader and investor based in Colorado. Im writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on prediction markets like Kalshi and Polymarket, and I strongly support the development of well-regulated, legal markets for event contracts. Ive seen firsthand how valuable these platforms are, and Im concerned that over-restricting or banning them would do more harm than good.
As a trader, I rely on prediction markets for accurate forecasting of elections and other public events. The prices on these platforms often cut through the noise of polls and pundits, giving me a clearer picture of what might happen. This isnt just useful for me; its information that benefits everyone, from small investors like myself to policymakers who need reliable data. I also dont see this as gambling at all. Trading event contracts takes research and judgment, just like trading stocks or commodities. Classifying these as gaming feels like a misstep when they serve real economic purposes, like price discovery and hedging against uncertainty.
Im all for regulation, but it needs to be proportionate. Broad categorical bans or overly tight restrictions dont solve problems; they push activity to unregulated offshore platforms where theres no oversight. Id much rather trade on a CFTC-regulated market like Kalshi, where I know there are safeguards, than be forced to use sketchy offshore sites. The CFTC already has strong tools to tackle manipulation and insider trading in other derivatives markets. I believe those same tools can work here without throwing the baby out with the bathwater.
Looking at some of the specific questions in the ANPR, Id like to address a few points. On Questions 7 and 8 under Public Interest, I think prediction markets strike a good balance between innovation and consumer protection when regulated properly. They democratize access to valuable information, and thats worth preserving. On Questions 15 and 16 under Listed Activities, I urge the CFTC not to lump event contracts under gaming. Theyre a legitimate financial tool, not a casino game. And on Questions 29 and 30 regarding inside information, I trust the CFTCs existing authority to handle bad actors without shutting down entire markets.
Im asking you to support a regulatory framework that allows prediction markets to thrive under fair, targeted rules. Dont let overzealous restrictions or outright bans drive this activity underground. Legal, regulated markets are the safest and most transparent option for traders like me, and they provide real value to society. Thank you for considering my perspective.
Sincerely,
Jonathan Beverley
