Comment Text:
Dear Chairman and Commissioners,
My name is Ken Gladkowski, and I'm a trader and investor based in Illinois. I'm writing to provide my input 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, and I strongly support the idea of well-regulated prediction markets. I believe they serve a valuable purpose for individuals like me, as well as for businesses and society at large.
As someone who trades regularly, I see prediction markets as a unique tool that provides information you can't find anywhere else. I've used these markets to hedge against real risks that affect my financial planning. For instance, I've placed trades on election outcomes and economic indicators like CPI numbers because they directly impact my investments and tax expectations. This isn't gambling to me. It takes research, analysis, and a deep understanding of current events, much like trading stocks or commodities. I think it's unfair to label this as "gaming" when it's really about making informed decisions.
I also believe that allowing everyday people like me to participate in these markets is a strength, not a problem. If only big institutions can trade, they keep all the valuable insights to themselves. Opening these markets to regular investors makes the pricing more accurate and levels the playing field. Plus, for small businesses or individuals, hedging risks like policy changes or economic shifts can be a lifeline. I've seen how a single election result can change regulations that hit my bottom line. Prediction markets give me a way to manage that uncertainty.
I'm aware of the CFTC's concerns about things like insider trading or market manipulation, and I get why those are issues. But banning or over-restricting these markets isn't the answer. Laws already exist to stop federal employees or others from trading on nonpublic information. The CFTC also has tools to go after manipulation in any regulated market. Use those tools instead of punishing everyone by shutting down something useful. It's like closing the stock market because a few people engage in insider trading. That wouldn't make sense.
I'd like to address a couple of specific questions from the ANPR. On Question 7, regarding public interest, I think prediction markets clearly serve the public by offering price discovery and risk management tools that benefit everyone, not just traders. On Question 15, about defining gaming, I urge the CFTC to recognize that event contracts have legitimate economic purposes and shouldn't be lumped in with gambling.
In closing, I ask that the CFTC support proportionate regulation of prediction markets. Don't ban or overly restrict them. Keep platforms like Kalshi accessible under fair rules that protect participants while allowing innovation. These markets matter to people like me who rely on them to navigate real-world risks.
Sincerely,
Ken Gladkowski
