Comment Text:
Dear Chairman and Commissioners,
My name is Houston Padgett, and I'm just 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've been trading on platforms like Kalshi for a while now, and I strongly support the idea of well-regulated prediction markets. I hope my perspective as an everyday user can help shape rules that work for people like me.
I rely on prediction markets to manage real financial risks in my life. For example, I run a small side business here in Texas, and election outcomes or policy changes can directly impact my costs and planning. Trading on regulated platforms like Kalshi lets me hedge against those uncertainties, whether it's a tax change or a new regulation that might hit my bottom line. This isn't gambling to me; it's a practical tool, much like buying insurance or investing in stocks to protect against future unknowns. I believe these markets are valuable for individuals and businesses alike who need ways to manage risks that traditional financial tools don't always cover.
What worries me is the idea of banning or over-restricting these markets. If that happens, people like me won't just stop trading; we'll get pushed to unregulated offshore platforms that don't have the oversight or consumer protections of a CFTC-registered market like Kalshi. I've seen some of those offshore sites, and they're a mess, with no accountability if something goes wrong. Keeping prediction markets legal and regulated here in the US is the best way to ensure safety and transparency for users. I think the CFTC should focus on proportionate rules that target specific problems, not broad categorical bans that punish everyone.
Looking at some of the questions in the ANPR, I want to address a couple that hit close to home. On Question 7, about balancing innovation and consumer protection, I think regulated markets already strike that balance by giving regular folks access to useful tools while having oversight to prevent abuse. And on Question 14, comparing these markets to insurance, I see them as similar in purpose, helping people manage risk, just in a different format. I also think Question 29, about insider trading, is important, but the answer isn't to shut down markets; it's to enforce the laws already in place against misuse of information.
I'm asking the CFTC to support proportionate regulation of prediction markets. Don't ban or overly restrict them. Keep platforms like Kalshi accessible under fair rules that protect users and encourage innovation right here in the US. Thanks for taking the time to read my comments.
Sincerely,
Houston Padgett
