Comment Text:
Dear Chairman and Commissioners,
My name is Patrick Whearty, and I'm just an everyday citizen from Nevada writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've been actively trading on platforms like Kalshi for a while now, and I strongly support the idea of well-regulated prediction markets. I appreciate the CFTC taking the time to gather public input before drafting rules, and I hope my perspective as a regular user can help.
I believe prediction markets are valuable for people like me. They give access to information and insights you can't find in polls or news. I use them to make informed decisions, not just to speculate, and I know the prices often reflect real-world probabilities better than anything else out there. But what matters most to me is the freedom to participate in legal, regulated markets. Platforms like Kalshi, which operate under CFTC oversight, provide a safe space for trading event contracts. I've seen firsthand how transparent and structured these markets are compared to the alternatives. If the CFTC bans or over-restricts prediction markets, I worry that activity will just move to unregulated offshore platforms where there are no protections at all. Thats not safer for anyone.
I also think about consumer protection. Regulation isn't just about stopping bad actors; it's about giving regular folks confidence that the system is fair. I trust a CFTC-regulated platform far more than some shady offshore site. Banning these markets doesn't solve problems; it creates them by pushing people like me to riskier places with no oversight. On top of that, I believe the US should be leading the way in financial innovation. If we clamp down too hard, other countries will take the lead, and we'll lose out on the benefits of being at the forefront of new ideas.
I noticed some of the CFTC's questions in the ANPR, like Question 7 on balancing innovation and consumer protection, and Question 14 on how prediction markets compare to other tools. To me, the answer is clear: regulated markets strike that balance by fostering innovation while protecting users. They're not like gambling; theyre a unique way to hedge risks and gain insight. I also think Question 29 about inside information misses the mark if it leads to outright bans. Insider trading is already illegal, and the CFTC has tools to enforce that. Dont punish the rest of us by shutting down a useful market.
I'm asking the CFTC to support proportionate regulation of prediction markets. Please dont ban or over-restrict them. Keep platforms like Kalshi operating under fair rules that protect consumers and keep the US competitive. Thanks for considering my input.
Sincerely,
Patrick Whearty
