Comment Text:
Dear Chairman and Commissioners,
My name is Melissa Long, and I'm just a regular person from Michigan writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I'm not an expert or a big investor, just someone who has found value in trading on regulated prediction markets like Kalshi. I want to urge the CFTC to support well-regulated prediction markets with fair, proportionate rules instead of overly restrictive bans or limitations.
I've been trading on Kalshi for a while now, and I can honestly say these markets give me insights I can't find anywhere else. Whether it's about an election outcome or an economic indicator like inflation, the prices on these platforms often seem more accurate than what I hear from polls or pundits on TV. That kind of information isn't just helpful for me as a trader; it benefits everyone by making public decision-making clearer. I think the CFTC should recognize this value when considering regulations, especially in response to Questions 7 and 8 about public interest and price discovery.
I'm also worried about what happens if these markets get banned or over-regulated. I've seen unregulated offshore platforms out there, and they don't have the protections that a CFTC-registered market like Kalshi offers. If you make it too hard to trade legally in the US, people like me might get pushed to those riskier sites. I'd much rather see strong consumer protections through sensible regulation here at home. This ties into Question 14 about balancing innovation and protection, and I think regulation is the better path.
Another thing that bothers me is the idea of calling event contracts "gaming." I put real thought and research into my trades, just like I would for stocks or other investments. These markets let me hedge risks, like how an election might affect my taxes or local business rules. They serve a real economic purpose, and I hope the CFTC considers this when looking at Questions 15 and 16 about defining legitimate markets.
I also believe the US should be a leader in financial innovation. We shouldn't let other countries take the lead on something as promising as prediction markets. And on the issue of manipulation or insider trading, I trust that the CFTC already has solid tools to handle bad actors, as mentioned in Questions 29 and 30. Informed trading actually makes prices more accurate, which helps everyone. Banning whole markets to stop a few bad apples doesn't seem fair or necessary to me.
Please craft rules that let everyday people like me participate in safe, regulated prediction markets. Focus on targeted solutions for specific risks instead of broad restrictions that could push activity offshore. I'm counting on the CFTC to get this balance right.
Sincerely,
Melissa Long
