Comment Text:
Dear Chairman and Commissioners,
My name is Alden Graetz, and I'm a small business owner from Florida. I run a local retail business here, and Ive been actively trading on prediction markets like Kalshi for a couple of years now. Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I strongly support the idea of well-regulated prediction markets and want to share why I think the CFTC should focus on proportionate rules rather than bans or heavy restrictions.
For me, trading on prediction markets isnt just a hobby. Its a way to hedge against uncertainties that directly impact my business. Things like election outcomes or new economic policies can shift consumer behavior or affect my costs overnight. Having a regulated platform like Kalshi gives me a tool to manage those risks in a way I cant through traditional investments alone. Its also about access. As a regular person, not some Wall Street insider, I value the freedom to participate in these legal, regulated markets. Shutting down or over-restricting them would cut people like me out of valuable information and tools, while big players would likely find workarounds.
Im really concerned about what happens if the CFTC goes too far with restrictions. Banning or heavily limiting prediction markets wont make the demand disappear. Itll just push people like me to unregulated offshore platforms. Ive seen some of those sites, and theyre a mess. No oversight, no consumer protections, and no accountability if something goes wrong. Kalshi, on the other hand, operates under CFTC rules. I feel safer knowing theres a system in place to prevent manipulation and ensure fair play. If you crack down too hard, youre not protecting anyone. Youre just driving activity to shadier corners of the internet where no one wins.
I noticed some of the questions in the ANPR, like Question 7 on balancing innovation and consumer protection, and Question 14 on public interest considerations. My take is simple. Regulated markets already strike that balance. They let innovation happen while keeping guardrails in place. The public interest is served by keeping these markets accessible and safe under CFTC oversight, not by pushing them out of reach.
I also want to address the worry about bad actors. I get it. Insider trading or manipulation is a real concern. But those are already illegal, and the CFTC has the power to go after violators. Punishing everyone by restricting entire markets doesnt seem fair or logical. Its like closing a highway because a few people speed.
I urge you to support proportionate regulation for prediction markets. Keep them legal, keep them regulated, and keep them accessible to everyday Americans like me. Dont let heavy-handed rules drive us to riskier alternatives.
Thank you for considering my input.
Sincerely,
Alden Graetz
