Comment Text:
Dear Chairman and Commissioners,
My name is Derrick Johnston, and I'm just a regular guy from Texas who wants to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). Im not a lawyer or a financial expert, just someone who actively trades on platforms like Kalshi and sees real value in these markets. I strongly support well-regulated prediction markets and hope the CFTC will craft rules that let everyday people like me participate without pushing activity to risky, unregulated offshore platforms.
I started trading on prediction markets because they give me information I cant find anywhere else. Honestly, their forecasts are often way more accurate than what I hear from polls or TV pundits. Whether its an election outcome or an economic indicator, these markets help me make better decisions for myself and my family. That kind of price discovery isnt just useful for traders, its good for everyone, even folks who dont trade. Its like a public service, aggregating what people really think.
I also believe event contracts arent gambling. They take research and judgment, just like trading stocks or commodities. Ive used them to hedge personal risks, like how an election might impact my taxes or local regulations. Calling this gaming feels wrong to me, its a real economic tool. Im all for consumer protection, but the answer isnt to ban or over-restrict these markets. Id much rather trade on a regulated platform like Kalshi, where there are rules and oversight, than be forced to use some sketchy offshore site with no protections. If the CFTC cracks down too hard, thats exactly where people like me will end up, and thats not safe for anyone.
Looking at some of the questions in the ANPR, I want to touch on a couple that hit home. On Question 7, about balancing innovation and consumer protection, I think regulation should focus on keeping markets fair and transparent, not shutting them out. And for Question 15, about defining gaming versus legitimate markets, I hope the CFTC sees that event contracts have serious economic purposes, like hedging and information gathering, and shouldnt be lumped in with gambling.
Im asking the CFTC to support proportionate regulation that targets specific risks, like manipulation or insider trading, without broad bans that hurt regular people. Let us keep participating in legal, regulated prediction markets. Dont push this activity offshore where theres no oversight. Thanks for taking the time to read my thoughts, I really appreciate the chance to weigh in.
Sincerely,
Derrick Johnston
