Comment Text:
Dear Chairman and Commissioners,
My name is Sakaydria Lindsey, and I'm a regular citizen from Texas 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 strongly support the idea of well-regulated prediction markets. I believe they offer unique value to people like me, and I hope the CFTC will create rules that allow these markets to thrive without over-restricting access.
I've found prediction markets to be incredibly useful for gaining insights that I can't get from news or polls. When I trade on Kalshi, I'm not just guessing. I'm doing research, reading up on events, and making informed decisions about things like election outcomes or economic indicators. The prices on these platforms often reflect a clearer picture of what's likely to happen than anything I hear from pundits. This isn't just helpful for traders, it benefits everyone by making information more transparent. I think the CFTC should recognize this value when considering regulations, especially in response to questions 7 and 8 about public interest and price discovery.
I also care deeply about my freedom to participate in legal, regulated markets. As an everyday person, I appreciate that prediction markets let me have a stake in understanding the world around me. If only big institutions could trade, all that valuable information would stay locked up with them. Plus, these markets help people and businesses hedge real risks. For example, I've used them to offset uncertainty around policies that could impact my personal finances. This isn't gambling, it's a practical tool, and I urge the CFTC to consider this hedging utility under questions 9 and 10.
Another point I want to raise is how informed trading actually improves these markets. When people with knowledge trade, the prices get more accurate, and that helps everyone. Banning or overly restricting these markets out of fear of insider trading doesn't make sense when laws already exist to prevent that. The CFTC already has tools to stop manipulation, and I think focusing on enforcing those, as discussed in questions 29 and 30 about inside information, is the better path.
Lastly, I'm worried about the US falling behind in financial innovation. If we over-regulate or ban prediction markets, activity will just move to unregulated offshore platforms, which are far riskier. Academic research also backs this up, showing how these markets improve data transparency and forecasting. We should lead on this, not cede ground to other countries. I hope the CFTC considers this under questions 33 and 34 on classification and costs.
I respectfully ask the CFTC to support proportionate regulation of prediction markets. Please don't impose broad bans or restrictions that would shut out regular folks like me. Focus on targeted rules to address specific risks while preserving the benefits these markets provide.
Sincerely,
Sakaydria Lindsey
