Comment Text:
Dear Chairman and Commissioners,
My name is Charles Maffei, and I'm just an everyday citizen from New Jersey writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on platforms like Kalshi, and I strongly support the idea of well-regulated prediction markets in the United States. I believe they provide real value to people like me, and I want to explain why I think the CFTC should regulate them fairly without shutting them down.
I've been using prediction markets to make sense of events that impact my life, like election outcomes or economic decisions that could affect my budget. Trading on a regulated platform like Kalshi gives me a way to hedge against uncertainties, whether it's a policy change that might hit my taxes or a Federal Reserve move that could mess with interest rates. This isn't gambling to me. It takes research and thought, just like any other investment. Plus, the prices on these markets often give me better information than what I hear from news or polls. I think that kind of insight benefits everyone, not just traders.
What worries me is the idea of pushing these markets offshore by over-regulating or banning them here. I've seen unregulated platforms out there, and they're nowhere near as safe or transparent as a CFTC-registered market like Kalshi. If the U.S. clamps down too hard, people like me will lose access to a legitimate tool, and activity will just move to sketchy overseas sites with no oversight. That seems like the opposite of consumer protection. I'm also concerned about the U.S. falling behind in financial innovation. We should be leading the way on new ideas like prediction markets, not ceding ground to other countries.
I want to address a couple of specific questions from the ANPR. On Question 7, about balancing innovation and consumer protection, I think regulation is the answer, not restriction. Keep markets like Kalshi under CFTC oversight to protect users while allowing innovation to grow. On Question 29, regarding informed trading, I believe traders with good information actually make prices more accurate, which helps everyone. And on manipulation or insider trading concerns, like in Questions 29-31, I trust the CFTC already has strong tools to handle bad actors. I've read about your authority to go after market manipulation, and I think using those existing powers is better than broad bans that punish law-abiding participants like me.
I'm asking you to support proportionate regulation of prediction markets. Don't over-restrict or ban them. Keep them accessible to regular people under clear, fair rules that protect consumers and keep the U.S. competitive. Thanks for considering my perspective.
Sincerely,
Charles Maffei
