Comment Text:
Dear Chairman and Commissioners,
My name is Kraven Ossman, and I'm a student from New York. I'm writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've used prediction markets a few times myself, and I strongly support their continued operation under fair, proportionate regulation by the CFTC. I believe these markets serve a real purpose for people like me and for society at large, and I want to share my perspective.
As a student, I don't have a big financial portfolio, but I've found prediction markets helpful for thinking through risks that affect my future. For instance, I've used platforms like Kalshi to place small trades on economic events, like inflation data releases, that could impact my student loans or part-time job prospects. It's not gambling to me; it's a way to hedge against uncertainty in my own small way. I know businesses use these markets for similar reasons, to protect against policy changes or economic shifts that could hurt their bottom line. This hedging utility is real, and it shouldn't be dismissed.
What worries me is the idea of banning or over-restricting these markets. I've read about how some unregulated offshore platforms operate with little oversight, and that seems far riskier than using a regulated market like Kalshi, which operates under CFTC rules. If prediction markets get shut down here, people won't just stop trading; they'll go to those offshore sites instead. That pushes activity into less safe spaces, away from your oversight. I believe regulated markets are the better path, giving people freedom to participate in legal, transparent platforms.
I also want to address some of the concerns raised in your ANPR, specifically around public interest and procedural aspects, like in Questions 7 and 23. I understand the need to balance innovation with consumer protection, but I think the answer lies in targeted rules, not broad restrictions. Focus on preventing manipulation or insider trading with the tools you already have, rather than limiting access for everyone. And when it comes to deciding what contracts are in the public interest, I think a case-by-case approach makes more sense than categorical bans, so legitimate hedging tools aren't swept away with problematic ones.
Prediction markets give regular people like me a chance to engage with real-world events in a meaningful way. They provide unique information and help manage risks that affect our lives. I urge the CFTC to support well-regulated prediction markets and avoid over-restrictive measures that would harm participants and push activity offshore. Thank you for considering my input.
Sincerely,
Kraven Ossman
