Comment Text:
Dear Chairman and Commissioners,
My name is Michael Landry, and Im a trader and investor based in Virginia. Im writing to express my strong support for the proportionate regulation of prediction markets in response to your Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). Ive been using these markets for hedging and risk management, and I believe they provide real value to individuals like me, as well as to the broader economy.
As someone who actively trades to manage financial risks, Ive found prediction markets to be an invaluable tool. They often produce forecasts that are far more accurate than polls or pundits, giving me insights I cant get elsewhere. For example, Ive used platforms like Kalshi to hedge against economic events that could impact my investments, such as interest rate decisions or election outcomes that might affect tax policies. This isnt gambling, its a legitimate way to protect myself from uncertainty, just like any other futures or options contract. Classifying event contracts as gaming ignores their real economic purpose, and I urge you to recognize their role in price discovery and risk management, especially in response to Questions 15-22 on listed activities.
I also want to stress the importance of keeping these markets regulated and accessible here in the U.S. Platforms like Kalshi, operating under CFTC oversight, are far safer than unregulated offshore alternatives. If we ban or over-restrict prediction markets, activity will just move to less secure venues where theres no consumer protection. Id rather see the CFTC focus on strong, targeted regulation to address risks like manipulation or insider trading, which you already have robust tools to handle. Questions 29-32 on inside information hit on this, and I believe the existing laws and your enforcement powers are enough to tackle bad actors without punishing the rest of us.
Finally, I think the U.S. should be leading in financial innovation, not falling behind. Prediction markets are a cutting-edge tool, and if we stifle them, other countries will step in. Addressing Questions 7-14 on public interest, I believe balancing innovation with consumer protection means supporting regulated markets, not restricting them. Let individuals and businesses continue to participate in legal, overseen platforms to hedge real risks and access unique information.
I appreciate the chance to share my views. Please support proportionate regulation of prediction markets and avoid broad bans or overly restrictive rules that would harm legitimate users like me.
Sincerely,
Michael Landry
