Comment Text:
Dear Chairman and Commissioners,
My name is Jileel McCain, and I'm a trader and investor based in South Carolina. I actively trade on prediction markets like Kalshi, and I'm 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've seen firsthand how these markets provide unique insights and opportunities, and I believe the CFTC has a chance to foster innovation while protecting participants with smart, proportionate rules.
As someone who spends a lot of time analyzing markets, I can tell you that prediction markets aren't just a hobby or a game. They're a source of information I can't get anywhere else. Whether it's gauging the odds of an election outcome or a Federal Reserve decision, the prices on platforms like Kalshi often cut through the noise of pundits and polls. This isn't just useful for me as a trader; it helps everyone by making public information more accurate and transparent. I also think it's a mistake to call this gambling. Trading on these platforms takes research and judgment, just like trading stocks or commodities. It's about understanding the world, not rolling dice.
What really concerns me is the risk of the United States falling behind in financial innovation. If we over-restrict or ban prediction markets, we're handing the future of this technology to other countries. I've traded enough to know that innovation doesn't wait for regulators to catch up. If the US doesn't lead, others will, and we'll lose the chance to shape how these markets grow. Regulated platforms like Kalshi are far safer than unregulated offshore sites. Let's keep activity here, under CFTC oversight, where it can be monitored and protected. I urge you to consider this in your responses to Questions 7 and 8 in the ANPR, about balancing innovation with consumer protection.
I'm also a firm believer that informed trading makes prediction markets better for everyone. When people with real knowledge participate, the prices reflect reality more accurately. That's not a flaw; it's a strength. Yes, insider trading is a concern, but it's already illegal, and the CFTC has tools to enforce against manipulation. Shutting down these markets to stop a few bad actors would punish honest traders like me. I'd point to Questions 29 and 30 in your notice, where you ask about the role of informed traders in price discovery. My view is clear: they improve it, and the focus should be on enforcing existing laws, not banning markets.
I appreciate the CFTC taking a thoughtful approach with this ANPR. My ask is simple. Please support proportionate regulation of prediction markets that encourages innovation and keeps the US competitive. Don't let over-restriction push this valuable tool offshore or out of reach for everyday traders like me.
Sincerely,
Jileel McCain
