Comment Text:
Dear Chairman and Commissioners,
My name is Eric von Albertini Mason, and I'm a trader and investor based in New York, currently studying at Brown University. I'm also an active user of prediction markets like Kalshi, and I'm writing to express my strong support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these markets provide unique value to individuals like me, as well as to society at large, and I urge the CFTC to adopt proportionate regulations rather than overly restrictive rules or outright bans.
As a student and trader, I've seen firsthand how prediction markets offer insights you can't get from polls or pundits. I've used platforms like Kalshi to trade on election outcomes and economic events, and the forecasts there are consistently sharper than what I read in the news. This isn't just helpful for me; its valuable for everyone who wants better information about the future, whether for personal decisions or public policy. Beyond that, these markets let me hedge personal financial risks, like betting on interest rate decisions that could impact loans I'm considering after graduation. This isn't gambling. It takes research and judgment, much like trading stocks or commodities. Classifying event contracts as "gaming" ignores their real economic purpose, and I hope the CFTC recognizes this distinction when addressing questions like 15 and 16 in the ANPR about defining legitimate markets.
I'm also concerned about U.S. competitiveness in financial innovation. If we over-restrict prediction markets, we risk pushing activity to unregulated offshore platforms, which are far less safe for consumers. I've looked at some of those alternatives, and they lack the transparency and protections of a regulated market like Kalshi. The CFTC already has strong tools to tackle manipulation and insider trading in other derivatives markets. I believe those can be adapted here without resorting to broad bans. This ties directly to questions 7 and 8 in the ANPR about balancing innovation with consumer protection. Regulation should focus on specific risks, not categorical prohibitions.
I also want to touch on something personal. For too long, industries like sports betting have misled Americans with poor odds and little transparency, often to the detriment of vulnerable people. Prediction markets are different. They aim to provide clearer outcomes and fairer payouts based on real-world events. They encourage informed decision-making, not blind chance. This aligns with questions 33 and 34 on classification and ensuring these markets serve a genuine purpose.
I ask the CFTC to support proportionate regulation that keeps prediction markets accessible, safe, and innovative within the U.S. Banning or over-restricting them would hurt regular traders like me and cede leadership to other countries. Let's build a framework that protects consumers while preserving the unique benefits these markets offer.
Sincerely,
Eric von Albertini Mason
