Comment Text:
Dear Chairman and Commissioners,
My name is Zach Kneeland, and I'm a trader and investor based in Texas. I've been actively trading on prediction markets like Kalshi for a while now, and I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I strongly support the development of well-regulated prediction markets in the United States, and I want to share my perspective as someone who participates in these markets regularly.
I believe prediction markets are a valuable tool for everyday people like me. They provide unique insights into future events, often more accurate than polls or expert opinions. I've used platforms like Kalshi to trade on economic indicators and political outcomes, and the information I gain helps me make better decisions, both financially and personally. These markets aren't just for big institutions. They let regular folks like me have a stake in understanding what's happening in the world, and I think that's a good thing. It's not gambling, either. It takes research and judgment, much like trading stocks or commodities.
What I care about most is the freedom to participate in legal, regulated markets. I've seen firsthand how a platform like Kalshi operates under CFTC oversight with clear rules and transparency. That's a far cry from the unregulated offshore platforms out there. If the CFTC over-restricts or bans prediction markets, people aren't going to stop trading. They'll just move to those offshore sites where theres no accountability, no consumer protection, and a much higher risk of fraud or manipulation. Regulated markets keep us safe and keep the activity under U.S. jurisdiction. I'd hate to see the U.S. push innovation and capital overseas by being too heavy-handed.
Regarding some of the specific questions in the ANPR, I want to address Question 7 on balancing innovation and consumer protection under the public interest topic. I believe the CFTC can strike that balance by focusing on proportionate regulation rather than broad prohibitions. Also, on Question 23 about procedural aspects, I think public interest determinations should prioritize keeping legitimate, regulated markets accessible while targeting specific risks like manipulation, which the CFTC already has tools to address.
I know there are concerns about insider trading or market manipulation, and those are valid. But banning or severely restricting prediction markets isn't the answer. Those activities are already illegal, and the CFTC has the authority to enforce against bad actors. Shutting down these markets to stop a few cheaters punishes honest traders like me and drives activity to less safe venues.
I'm asking the CFTC to support proportionate regulation of prediction markets. Please don't ban or over-restrict them. Keep platforms like Kalshi accessible under clear, fair rules that protect consumers while allowing innovation to thrive in the U.S.
Thank you for considering my input.
Sincerely,
Zach Kneeland
