Comment Text:
Dear Chairman and Commissioners,
My name is Brice Mclean, and I'm just an everyday citizen from Alabama writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I actively trade on platforms like Kalshi, and I strongly support the idea of well-regulated prediction markets here in the United States. I appreciate the chance to weigh in on this.
I believe prediction markets are a valuable tool, not just for me but for society. They provide information you can't get anywhere else, often more accurate than polls or pundits. I've used Kalshi to get a clearer picture of things like election outcomes or economic indicators, and that helps me make better decisions in my own life. It's not gambling, either. Trading on these markets takes research and judgment, just like investing in stocks. Calling it "gaming" feels like a stretch when event contracts serve real purposes, like price discovery or even hedging risks that affect my wallet. I urge you to look at Question 15 in your ANPR and avoid classifying these contracts as gaming. Theyre economic tools, plain and simple.
I'm also worried about what happens if we over-restrict or ban these markets. People are adults. We make our own choices. If we can't trade on regulated platforms like Kalshi here at home, folks will just go to unregulated offshore sites. Thats less safe for everyone and means the U.S. loses out on oversight and tax revenue. Id rather see the CFTC keep activity here where it can be watched and taxed properly. This ties to your Questions 7 and 8 on balancing innovation with consumer protection. Regulated markets are the safer bet compared to pushing people offshore.
On top of that, the CFTC already has strong tools to handle issues like manipulation or insider trading. You don't need to reinvent the wheel or ban entire markets to stop a few bad actors. Just use whats already in place. I think Question 29 about informed traders and price discovery is important here. Those of us trading bring real information to the table, and that benefits everyone, not just traders.
Finally, I want the U.S. to lead in financial innovation. We shouldn't cede ground to other countries by over-regulating. Prediction markets have solid academic backing for their ability to aggregate data transparently, and we should be the ones setting the standard. Lets not fall behind.
Im asking you to support proportionate regulation of prediction markets. Dont ban or over-restrict them. Keep them accessible to regular folks like me under clear, fair rules that protect everyone while fostering innovation. Thanks for considering my perspective.
Sincerely,
Brice Mclean
