Comment Text:
Dear Chairman and Commissioners,
My name is Tyler Young, and I'm a business owner from South Dakota. Ive run my small business here for over a decade, navigating the ups and downs of economic uncertainty and policy changes that impact my livelihood. Im writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. Ive used prediction markets a few times myself, and I strongly support their existence under fair, regulated conditions.
As a business owner, I value the freedom to participate in legal, regulated markets like those offered by platforms such as Kalshi. These markets give me a way to hedge against uncertainties that directly affect my business, like potential shifts in federal regulations or economic policies. More than that, they provide insights and forecasts that I cant get from pundits or news outlets. I believe regular folks like me should have access to these tools, not just big institutions. But Im worried that overly strict rules or outright bans will take that access away.
One of my biggest concerns is what happens if the CFTC over-restricts or prohibits these markets. Ive seen how banning something doesnt make it disappear; it just pushes activity underground or offshore to unregulated platforms. Those places dont have the oversight or protections that a CFTC-registered market like Kalshi offers. If I want to participate in a prediction market to protect my business interests, Id much rather do it in a safe, regulated environment where there are rules against manipulation and fraud. Driving activity offshore just makes things riskier for everyone.
I also think the CFTC should focus on proportionate, targeted regulation instead of broad categorical bans. I understand there are concerns about things like insider trading or market manipulation, and those are real issues. But the CFTC already has tools to address bad actors, as seen in other derivatives markets. Applying those existing safeguards with specific adjustments for prediction markets makes more sense than shutting down entire categories of contracts. Im particularly drawn to questions 7 and 8 in the ANPR, about balancing innovation with consumer protection. I believe you can achieve that balance by focusing on oversight and enforcement rather than prohibition.
Im not a lawyer or a financial expert, just a business owner who sees the value in these markets. I urge the CFTC to support well-regulated prediction markets that allow everyday Americans like me to participate safely. Please dont let over-restriction or bans push this activity to less secure, offshore venues. Craft rules that address specific risks without punishing the majority of us who use these markets responsibly.
Thank you for considering my perspective.
Sincerely,
Tyler Young
