Comment Text:
Dear Chairman and Commissioners,
My name is Finn Frank, and I'm just a regular guy from Michigan who wants to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've been trading on platforms like Kalshi for a while now, and I strongly support the idea of well-regulated prediction markets. I think theyre a valuable tool for people like me, and I hope my perspective adds something useful to your considerations.
Ive always been interested in following politics and economic trends, but Im not an expert or a big investor. Prediction markets give me a way to engage with whats happening in the world, and they provide information I cant get anywhere else. Honestly, Ive found the forecasts on these platforms to be way more accurate than what I hear from polls or talking heads on TV. Whether its an election outcome or an economic indicator, the prices on these markets cut through the noise and give a clearer picture. Thats not just helpful for traders like me, its good for everyone who wants to understand whats likely to happen.
What I really value is the freedom to participate in a legal, regulated space. Platforms like Kalshi operate under rules and oversight, which makes me feel a lot safer than if I were using some offshore site with no accountability. If we over-restrict or ban these markets, I worry that people will just turn to unregulated platforms where theres no protection at all. Id rather see the CFTC focus on keeping legitimate markets safe and accessible than pushing activity into the shadows.
I also want to push back on the idea that event contracts are gambling. To me, trading on these markets isnt about luck, its about research and judgment. I read up on issues, weigh the odds, and make decisions, just like I would with any other investment. These contracts have real economic purpose, whether its helping someone hedge against uncertainty or just aggregating information for better forecasts. I think Question 15 in your notice, about defining gaming versus legitimate markets, is important here. I hope youll see these contracts as distinct from gambling and regulate them accordingly.
I understand there are concerns about things like manipulation or insider trading, and those are real issues. But the CFTC already has tools to address bad actors, and I think enforcing those existing rules is better than restricting access for everyone. I also think Question 7, about balancing innovation and consumer protection, gets to the heart of this. We can have both if regulation is targeted and fair.
Im asking you to support proportionate regulation of prediction markets. Please dont ban or over-restrict them. Keep platforms like Kalshi accessible for regular folks like me, under rules that protect us without shutting down a useful tool. Thanks for taking the time to read this.
Sincerely,
Finn Frank
