Comment Text:
Dear Chairman and Commissioners,
My name is John He, and Im a trader and investor based in Nevada. Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on regulated prediction markets like Kalshi, and I want to express my strong support for proportionate regulation that allows everyday people like me to participate in these legal, safe platforms.
Ive been trading on prediction markets for a while now, and I can tell you theyre incredibly valuable. They give me insights I cant get from news or polls, whether its about election outcomes or economic data releases. The prices reflect real-world probabilities better than most experts, and that helps me make informed decisions, not just in trading but in planning my investments. I dont see this as gambling. Its research and judgment, just like trading stocks or futures. Plus, allowing regular folks like me to participate makes the markets information more accurate and keeps the benefits from being locked up with big institutions.
What Im most concerned about is my freedom to participate in legal, regulated markets. Platforms like Kalshi, which operate under CFTC oversight, are transparent and accountable. I trust them far more than unregulated offshore sites where theres no protection if something goes wrong. If the CFTC over-restricts or bans prediction markets, people arent going to stop trading. Theyll just move to those shady platforms outside U.S. jurisdiction, where theres no oversight, no consumer protection, and no way to stop fraud or manipulation. Thats a much bigger risk than letting regulated markets operate.
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 like Kalshi already strike that balance. They innovate by giving us access to unique financial tools while operating under strict rules to protect users. On Question 14, about the risks of these markets, I acknowledge there are concerns like potential manipulation or insider trading. But the CFTC already has powerful tools to combat those issues in other markets, and they can apply them here without banning entire categories of contracts or shutting out regular traders.
Im asking you to support proportionate regulation of prediction markets. Dont over-restrict or ban them. Keep platforms like Kalshi accessible to people like me, where we can trade safely under your oversight. Pushing activity offshore by being too restrictive would hurt American traders and cede innovation to other countries. Lets keep these markets regulated, transparent, and open to all.
Thank you for considering my input.
Sincerely,
John He
