Comment Text:
Dear Chairman and Commissioners,
My name is Jose Sanchez, and I'm just an everyday citizen from Alabama writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've been trading on platforms like Kalshi for a while now, and I strongly support the idea of well-regulated prediction markets. I believe they provide real value to people like me and to society as a whole, and I hope the CFTC will create rules that allow these markets to thrive without over-restricting them.
I got into prediction markets because I wanted better information about things that affect my life, like elections or economic decisions. Honestly, the forecasts on these platforms have been way more accurate than anything I see from polls or TV pundits. That kind of insight helps me make decisions, whether it's planning my budget around potential policy changes or just understanding what's likely to happen next. I think this benefits everyone, not just traders. It's like having a clearer picture of the future, and that's something we all need.
What I appreciate about trading on a regulated platform like Kalshi is that it feels safe. I've looked at some offshore alternatives, and they seem sketchy, with no oversight. If the CFTC bans or over-restricts prediction markets, I worry that people will just move to those unregulated sites, which would be worse for consumer protection. Keeping these markets legal and under your watch is the better way to go. I also believe the CFTC already has strong tools to handle issues like manipulation or insider trading. There's no need for broad bans when you can target specific bad actors with the rules already in place.
Another thing that bothers me is when people call event contracts "gambling." Thats not what this is. Trading on prediction markets takes research and judgment, just like investing in stocks. I'm not rolling dice; I'm making informed decisions. These contracts serve real purposes, like price discovery and even hedging against uncertainties that affect my finances. Plus, allowing regular folks like me to participate keeps the system fair. If only big institutions can trade, they hoard all the good info. Informed trading by everyday people actually makes the market smarter and benefits everyone.
Id like to touch on a couple of your specific questions. Regarding Question 7 under Public Interest, I think prediction markets balance innovation and protection when theyre regulated properly, as Ive experienced with Kalshi. And for Question 15 on Listed Activities, I urge you not to classify event contracts as gaming; theyre legitimate economic tools. Finally, I believe the US should lead in financial innovation. We shouldnt let other countries take the lead while we fall behind with heavy-handed rules.
I ask that the CFTC support proportionate regulation of prediction markets. Focus on targeted rules for specific risks, not broad bans that punish everyone. Lets keep these markets legal, safe, and open to regular people like me.
Sincerely,
Jose Sanchez
