Comment Text:
Dear Chairman and Commissioners,
My name is Robert Skead, and I'm a trader and investor from New Jersey. I've been actively trading on prediction markets like Kalshi for a while now, and I'm writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I strongly support the idea of well-regulated prediction markets, and I hope my perspective as someone who participates in these markets can help shape a balanced approach.
For me, trading on prediction markets isn't just a hobby or a way to make a profit. It's about having the freedom to participate in legal, regulated spaces where I can use my research and judgment to engage with real-world events. Platforms like Kalshi give me, and others like me, a chance to access unique information through market prices that you can't find in polls or news commentary. I've seen firsthand how these prices often predict outcomes more accurately than so-called experts. That benefits everyone, not just traders, by providing clearer insights into what's likely to happen, whether it's an election or an economic policy shift.
One thing I'm particularly passionate about is keeping these markets regulated and onshore. I trade on Kalshi because it's a CFTC-registered platform with rules and oversight. That makes me feel secure knowing there's accountability. If the CFTC over-restricts or bans these markets, people like me won't just stop trading. We'll be pushed to unregulated offshore platforms with no protections, no transparency, and no recourse if something goes wrong. That's a much bigger risk to consumers than a well-monitored market. I urge you to consider this in your responses to Questions 7 and 8 in the ANPR, which deal with balancing innovation and consumer protection. Regulation, not prohibition, is the answer.
I also believe that informed trading is a good thing for price discovery, as touched on in Questions 29 and 30. When people with knowledge trade, it makes the market prices more accurate, which helps everyone, from casual participants to policymakers looking for reliable signals. Worries about insider trading are valid, but the laws are already in place to handle that. The CFTC has the tools to enforce against manipulation and abuse. Banning or overly restricting markets punishes honest traders like me instead of targeting the bad actors.
I'm just a regular guy who wants to keep participating in these markets without fear of them being shut down or driven underground. Prediction markets are a powerful tool for understanding the world, and they work best when they're open to everyday people under fair rules. I respectfully ask that the CFTC support proportionate regulation that keeps markets like Kalshi accessible and safe, rather than imposing broad bans or restrictions that could harm participants and stifle innovation.
Thank you for considering my views.
Sincerely,
Robert Skead
