Comment Text:
Dear Chairman and Commissioners,
My name is Kiyoung Cho, and Im a healthcare professional from New Jersey. Im writing to share my strong support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I actively trade on platforms like Kalshi and Polymarket, and I believe these markets provide real value to individuals like me, as well as to society at large. Im asking the CFTC to regulate these markets proportionately and avoid broad bans or overly restrictive rules.
As someone working in healthcare, I deal with uncertainty every day, whether its about policy changes affecting my profession or economic shifts impacting my personal finances. Prediction markets have become a tool for me to hedge against some of that uncertainty. For instance, Ive used Kalshi to trade on election outcomes and economic indicators like inflation data, which directly tie to my costs for things like insurance premiums or loan rates. This isnt gambling to me; its a practical way to manage real risks, much like how I might invest in stocks or mutual funds after doing my homework.
I also value the forecasting power of these markets. Ive seen firsthand how their predictions on public events, like elections, often beat out polls or media pundits. That kind of information is helpful not just to traders but to anyone trying to make sense of the world. Its frustrating to think that banning or over-restricting these markets could push this activity offshore to unregulated platforms, where theres less oversight and more risk. The CFTC already has strong tools to tackle issues like manipulation or insider trading. I trust you can use those tools here without resorting to sweeping prohibitions.
On a broader level, I believe the US should be a leader in financial innovation. If we clamp down too hard on prediction markets, we risk ceding ground to other countries that embrace this technology. Ive read academic studies showing how these markets improve information transparency and price discovery. Why shouldnt we champion that here? Im particularly drawn to your questions 7 and 8 in the ANPR about balancing innovation with consumer protection. My view is that targeted rules addressing specific risks, like insider trading, are far better than categorical bans that stifle progress.
Im not blind to the concerns about potential abuse in these markets. But shutting them down or over-regulating them punishes honest participants like me. Kalshi, as a regulated platform, feels safe and transparent, and Id rather trade there than on some offshore site with no accountability. Please keep prediction markets like Kalshi legal and focus on proportionate regulation that addresses real risks without killing the benefits.
Thank you for considering my perspective. I urge the CFTC to support well-regulated prediction markets and ensure they remain accessible to everyday people like me.
Sincerely,
Kiyoung Cho
