Comment Text:
Dear Chairman and Commissioners,
My name is Nick Peterson, and I'm a software engineer based in Massachusetts. Im writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. Ive used prediction markets a few times, and I believe they serve a valuable purpose when properly regulated. Im concerned about overly restrictive rules that could push activity into unsafe, unregulated spaces, and I want to urge the CFTC to support fair, accessible, and well-regulated markets.
As someone working in tech, I see prediction markets as a unique tool for aggregating information. Theyre not just a niche hobby; they often provide insights you cant get from polls or news. Ive placed a few trades on platforms like Kalshi, mostly to test my understanding of upcoming events like elections or economic data releases. Its not gambling to me. Its a way to engage with the world, research outcomes, and put a small stake on what I think will happen. Banning or over-restricting these markets would take away a legitimate avenue for regular people like me to participate in something thats both educational and financially meaningful.
What worries me most is the idea of driving this activity offshore. Regulated platforms like Kalshi, operating under CFTC oversight, have clear rules, transparency, and accountability. Ive felt safe using them because I know theres oversight. But if the CFTC clamps down too hard, people wont just stop trading. Theyll turn to unregulated, offshore sites with no protections. Ive seen this in tech with other industries; when legal options disappear, shady alternatives pop up. Thats worse for everyone. I think the CFTC should focus on keeping markets safe and accessible here in the US, not pushing them out of reach.
I also want to touch on a couple of your specific questions from the ANPR. Regarding Question 7 on balancing innovation and consumer protection, I believe regulated prediction markets strike that balance by allowing innovation while having safeguards in place. And for Question 29 about inside information, I agree its a concern, but the answer isnt banning these markets. Existing laws already prohibit insider trading, and the CFTC has tools to enforce them. Punishing everyone for the actions of a few bad actors doesnt make sense.
I hope the CFTC will support proportionate regulation of prediction markets. Let regular people like me continue to participate in legal, supervised platforms. Dont let heavy-handed rules drive this activity into the shadows. Thank you for considering my input.
Sincerely,
Nick Peterson
