Comment Text:
Dear Chairman and Commissioners,
My name is Jeren Selman, and I'm just an everyday citizen from Idaho writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've been actively trading on platforms like Kalshi for a while now, and I strongly support the idea of well-regulated prediction markets in the United States. I believe they offer real value, both to me personally and to society, and I hope the CFTC will create rules that allow these markets to thrive while protecting consumers.
I got into prediction markets because I wanted a way to make sense of the uncertainty around political and economic events that affect my life. Trading on Kalshi has given me a chance to engage with these issues in a meaningful way, whether it's an election outcome that could change tax policies or a Federal Reserve decision that might impact interest rates. It's not gambling to me. It takes research and judgment, just like investing in stocks or other financial instruments. I think calling event contracts "gaming" is a misstep. They serve a real economic purpose, like helping me hedge against risks or just better understand the world. I'd urge the CFTC to recognize this distinction when addressing questions 15 through 22 about defining gaming versus legitimate markets.
I'm also worried about what happens if these markets get banned or over-restricted. I've seen unregulated offshore platforms out there, and they're far less safe. They don't have the oversight or consumer protections that a CFTC-regulated platform like Kalshi offers. If the U.S. pushes too hard with restrictions, people like me will get forced into riskier spaces. I believe regulated markets are the answer, not prohibition. This ties directly to questions 7 through 14 on balancing innovation with consumer protection. Regulation can keep us safe without killing off a useful tool.
On top of that, I think the U.S. should be a leader in financial innovation. Why let other countries take the lead on something that could be a powerful economic engine? Prediction markets can aggregate information and provide insights you can't get from polls or pundits. Letting regular folks like me participate makes the system fairer and the data better. I hope the CFTC considers this when looking at questions 33 through 40 on classification and the costs of regulation.
I understand there are concerns about manipulation or insider trading, but the CFTC already has tools to address those issues. Let's not punish everyone by shutting down these markets because of a few bad actors. I'm asking you to support proportionate regulation that allows prediction markets to operate legally and safely in the U.S. Don't ban or over-restrict them. Keep platforms like Kalshi accessible to everyday people like me under strong oversight.
Thank you for considering my perspective.
Sincerely,
Jeren Selman
