Comment Text:
Dear Chairman and Commissioners,
My name is Kaleb Gossiaux, and I'm an everyday citizen from Tennessee who actively trades on prediction markets like Kalshi. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I support the idea of regulated prediction markets, but I have serious concerns about how they're currently handled, and I want to share my perspective on how the CFTC can approach this responsibly.
I believe in the freedom to participate in legal, regulated markets like Kalshi. These platforms give regular folks like me a chance to engage with events that impact our lives, whether it's an election outcome or an economic decision. It's not just about making a buck. It's about having a stake in understanding what's happening around us. But I also see prediction markets for what they are, in many ways, a form of gambling. The difference is that gambling is often more tightly regulated, and violations are taken seriously. On Kalshi, I've seen issues like mispriced contracts and results that don't match the terms, with the platform hiding behind excuses like the market being "closed" even when the outcome was wrong. As the only prediction market available in the U.S., Kalshi has too much power to mishandle people's money without real consequences.
That's why I'm asking for proportionate, targeted regulation instead of broad bans. Shutting down prediction markets would just push people like me to unregulated offshore platforms, which are even riskier. We need consumer protection through strong oversight right here at home. Specifically, I think the CFTC should create an easier and more effective way to report violations by these platforms. Right now, it feels like there's no real accountability. If Kalshi and others were regulated with the same seriousness as gambling sites, violations would carry weight, and we'd see real consequences. This ties into your questions in Topic Area B, like Question 7 on balancing innovation and consumer protection. I'm all for innovation, but not at the cost of users getting burned by unchecked platforms.
I also want to touch on Topic Area D, like Question 23 about when public interest determinations should happen. I think the CFTC needs to step in early and often to evaluate these markets individually, not just lump them into categories. Each contract can have unique risks, and a one-size-fits-all ban or rule won't cut it. Targeted rules that address specific problems, like mispricing or unfair closures, would protect users without killing the market.
I'm asking the CFTC to support prediction markets with regulation that holds platforms accountable and protects everyday traders like me. Don't over-restrict or ban them, but don't let them operate without serious oversight either. Make reporting violations simple and effective, and treat these markets with the gravity they deserve.
Sincerely,
Kaleb Gossiaux
