Comment Text:
Dear Chairman and Commissioners,
My name is Deion Sanders, and I'm a trader and investor based in Florida. I'm writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. As someone who actively trades on platforms like Kalshi, I strongly support the development of well-regulated prediction markets in the United States. I believe they provide real value, both to me personally and to society, and I urge the CFTC to craft rules that protect consumers without shutting down or overly restricting these innovative markets.
I've been trading on prediction markets for a while now, and I can tell you they aren't just a game or a gamble. I use platforms like Kalshi to make informed decisions about real-world events, whether it's an election outcome that could impact my taxes or a Federal Reserve decision that might affect my investments. This isn't luck; it takes research and judgment, just like trading stocks or commodities. Classifying event contracts as "gaming," as discussed in Questions 15-22 of the ANPR, ignores the legitimate economic purposes they serve, like price discovery and hedging. I think it's critical to recognize this distinction and regulate them as financial instruments, not gambling.
What worries me most is the idea of banning or over-restricting these markets. If the CFTC makes it too hard to trade on regulated platforms, people like me will get pushed to unregulated offshore alternatives. I've seen those sites. They don't have the oversight or consumer protections that a CFTC-registered platform like Kalshi offers. Addressing Questions 7-14 on public interest, I believe regulated markets are far safer and better for everyone. They keep activity transparent and under the CFTC's watchful eye, reducing risks of fraud or manipulation. Banning or limiting access would just drive trading underground, which helps no one.
I get that there are concerns about consumer protection, and I share them. That's why I'm all for smart regulation that tackles issues like manipulation or insider trading, as raised in Questions 1-6 and 29-32. But the CFTC already has tools to handle those problems. Let's use them instead of broad restrictions that punish law-abiding traders like me. I want to keep participating in legal, regulated markets where my interests are protected, not be forced into sketchy offshore options.
Prediction markets give me a way to engage with the world, make informed bets on the future, and sometimes hedge my risks. They also provide information you can't find anywhere else, often more accurate than polls or pundits. I ask the CFTC to support proportionate regulation that allows these markets to thrive while addressing specific risks with targeted rules. Please don't ban or over-restrict them. Keep platforms like Kalshi accessible to everyday traders like me under a strong but fair regulatory framework.
Thank you for considering my input.
Sincerely,
Deion Sanders
