Comment Text:
Dear Chairman and Commissioners,
My name is Donovan Drenchko, and I'm a student from New York. I'm writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on platforms like Kalshi, and I want to express my strong support for well-regulated prediction markets. Theyve become a meaningful part of my free time, not just for entertainment but as a way to learn about real-world events.
As a student, I find Kalshi to be a unique tool. Its not like gambling, which Ive struggled with in the past on platforms like FanDuel. That was a dark time for me, driven by the rush of quick bets with no substance. Kalshi is different. Its friendly and engaging, and I use it for enjoyment, not to chase money. It pushes me to research and think critically about politics, economics, and other issues. Im not just betting blindly; Im learning how to analyze information and make informed decisions. To me, event contracts arent gaming. They serve a real purpose by helping people like me understand the world better and even hedge against uncertainties that affect our lives.
I also believe regulated markets like Kalshi are far safer than the alternative. If the CFTC over-restricts or bans these platforms, people will just turn to unregulated offshore sites that have no oversight. Id much rather trade on a platform under CFTC rules where theres some level of consumer protection. Addressing Question 7 from the ANPR, on balancing innovation and consumer protection, I think the answer is clear: regulation, not prohibition, keeps users safe while allowing innovation to thrive. The U.S. should be leading in financial tools like this, not pushing them overseas to other countries.
On Question 15, about defining gaming versus legitimate markets, I strongly feel that event contracts arent gambling. Theyre based on research and judgment, much like trading stocks. Plus, as raised in Question 29, informed trading actually helps everyone. When people bring knowledge to the market, prices get more accurate, and that benefits all of us, not just traders. Banning or over-restricting these markets would cut off a valuable source of information and punish regular people like me who want to participate in a legal, regulated space.
I urge the CFTC to support proportionate regulation of prediction markets. Dont ban or overly restrict them. Keep platforms like Kalshi accessible under fair rules that protect consumers while fostering innovation. Thank you for considering my perspective as a student who values this unique way to engage with the world.
Sincerely,
Donovan Drenchko
