Comment Text:
Dear Chairman and Commissioners,
My name is Christopher King, and I'm a trader and investor from Georgia. I've been actively trading on prediction markets like Kalshi for some time now, and Im writing to express my strong support for well-regulated prediction markets in response to your Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these markets provide unique value to people like me, and to society as a whole, and I urge the CFTC to craft proportionate rules that allow them to thrive.
As a trader, I've seen firsthand how prediction markets offer information you can't get anywhere else. Their forecasts on elections and other public events have consistently been more accurate than polls or pundits. I rely on this data to make informed decisions, not just for trading but for understanding the world around me. Beyond that, Kalshi has given me a safe, regulated platform to hedge personal financial risks, like potential policy changes that could impact my investments or taxes. This isn't gambling; it's a tool for managing real uncertainty, much like trading stocks or commodities. Calling event contracts "gaming" ignores their legitimate economic purpose.
I also value the freedom to participate in legal, regulated markets. Platforms like Kalshi ensure consumer protection with oversight, which is a far cry from unregulated offshore alternatives. If the CFTC over-restricts or bans these markets, activity will just move to less safe venues outside US jurisdiction. That hurts traders like me and undercuts US competitiveness in financial innovation. We should be leading in this space, not ceding it to other countries.
Regarding some of your specific questions, Id like to address a few from the ANPR. On Questions 7-14 about public interest, I believe prediction markets balance innovation with consumer protection when regulated properly. They improve price discovery and provide better information for public decision-making. On Questions 15-22 about listed activities, event contracts serve real purposes like hedging and shouldn't be lumped in with gaming. And on Questions 29-32 about inside information, I think informed trading actually helps price discovery, benefiting all participants. As for manipulation or insider trading concerns, the CFTC already has robust tools to tackle those issues. Use them, rather than imposing broad bans that punish everyone.
Im not blind to the risks. Yes, bad actors could try to manipulate markets, but banning or over-restricting prediction markets isn't the answer. Targeted regulation addressing specific issues like manipulation makes more sense than categorical prohibitions. Lets keep these markets accessible to regular people like me while ensuring safety through oversight.
Thank you for considering my input. I strongly encourage the CFTC to support proportionate regulation of prediction markets and avoid bans or overly restrictive rules that would harm innovation and push activity offshore.
Sincerely,
Christopher King
