Comment Text:
Dear Chairman and Commissioners,
My name is Daniel Obitade, and I'm a student and associate cybersecurity analyst based in Texas. I'm writing to express my strong support for the proportionate regulation of prediction markets as outlined in the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). As someone who actively trades on platforms like Kalshi, Ive seen firsthand how these markets provide unique value, both to me personally and to society at large, and I believe the CFTC should regulate them in a way that preserves access while addressing legitimate risks.
Prediction markets aren't just a niche hobby for me; theyre a tool for understanding the world. As a cybersecurity analyst, I rely on accurate, real-time information to assess risks and make decisions. Trading on Kalshi has given me access to aggregated data on events like elections or economic indicators that I cant find in polls or news. This isnt gambling, its a serious process of research and judgment, much like traditional investing. Ive used these markets to hedge personal financial risks, like betting on interest rate changes that affect my student loans. Classifying event contracts as mere "gaming" ignores their real economic purpose, whether its price discovery or risk management.
I also value the freedom to participate in legal, regulated markets. Platforms like Kalshi, operating under CFTC oversight, are far safer than unregulated offshore alternatives. If access is overly restricted, people like me will be pushed to less secure venues with no protections. Thats not a solution, its a bigger problem. Additionally, as someone with an academic bent, Im excited by how these markets contribute to public decision-making. The data they generate is a goldmine for research, offering transparent insights into what people really think about future events. Informed trading, far from being a threat, actually sharpens price discovery. When knowledgeable participants trade, the resulting prices are more accurate, benefiting everyone, not just traders.
Id like to address a couple of specific questions from the ANPR. On Question 7, regarding balancing innovation and consumer protection, I believe regulated markets already strike this balance by providing safeguards while fostering new tools for information. On Question 29, about inside information, I think informed trading often improves market accuracy, and existing laws against insider trading by federal officials should be enforced rather than banning entire markets.
I urge the CFTC to support well-regulated prediction markets without imposing overly broad restrictions. Focus on targeted rules for specific risks like manipulation, and use the robust tools you already have. Dont punish everyday participants like me by limiting access to these valuable platforms. Thank you for considering my input.
Sincerely,
Daniel Obitade
