Comment Text:
Dear Chairman and Commissioners,
My name is Brandon Knight, and I'm a sports professional from New York. I've used prediction markets a few times to get a better sense of outcomes that affect my work and personal finances, and Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I strongly support well-regulated prediction markets and want to share why I think theyre valuable, both for me and for society.
In my line of work, understanding trends and probabilities is key. Whether its anticipating how a policy change might impact sports events or how economic shifts could affect my income, prediction markets have given me insights that polls and pundits often miss. Ive seen firsthand how these markets produce more accurate forecasts by pooling real-world knowledge from lots of people. Thats not just helpful for traders like me, its useful for everyone who wants better information about the future. Plus, Ive used these markets to hedge risks, like potential disruptions from regulatory changes or economic events that could hit my business hard. This isnt gambling, its a practical tool, no different from other financial strategies I use to manage uncertainty.
I also value the freedom to participate in legal, regulated markets like Kalshi, which are far safer than unregulated offshore platforms. If the CFTC cracks down too hard, people like me will just get pushed to less secure venues, and thats worse for everyone. I believe event contracts serve real economic purposes, like price discovery and risk management, and shouldnt be labeled as gaming. Calling them gambling feels like calling stock trading gambling, its just not accurate. And honestly, informed trading only makes prices sharper, which benefits all of us who rely on these markets for signals.
Im aware of concerns about manipulation or insider trading, but the CFTC already has strong tools to tackle those issues. Theres no need for broad bans when targeted rules can address specific risks. Id urge you to consider questions 7 and 15 from the ANPR, about balancing innovation with consumer protection and defining what counts as gaming. I think proportionate regulation is the answer, not heavy-handed restrictions. The US should be leading on financial innovation, not handing the advantage to other countries.
Im just one person, but I hope my perspective shows why prediction markets matter. Please support rules that allow these markets to thrive under fair oversight, without banning or over-restricting them. Thank you for considering my input.
Sincerely,
Brandon Knight
