Comment Text:
Dear Chairman and Commissioners,
My name is Tyler Thalman, and I'm a software engineer from Utah. I've been working in tech for years, and I have a personal interest in prediction markets as someone who actively trades on platforms like Kalshi and Polymarket. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516) to express my strong support for well-regulated, legal prediction markets in the United States.
As a tech professional, I value innovation and the ability to participate in cutting-edge financial tools. Prediction markets aren't just a niche hobby for me; they provide real value. I've used them to hedge risks tied to economic events, like inflation data releases that could impact my personal finances or political outcomes that might affect tech regulations. This isn't gambling, no matter how some might classify it. It's a legitimate way to manage uncertainty, much like trading stocks or futures based on research and judgment. I believe event contracts serve clear economic purposes, like price discovery and risk management, and shouldn't be lumped in with gaming.
I also want to highlight the importance of regulated markets. Platforms like Kalshi, operating under CFTC oversight, are far safer than unregulated offshore alternatives. If the CFTC over-restricts or bans these markets, it won't stop trading; it will just push people like me to less secure venues with no consumer protections. The U.S. should be leading in financial innovation, not ceding ground to other countries. Keeping these markets regulated here ensures transparency and accountability.
On the topic of manipulation and insider trading, I think the CFTC already has strong tools to address bad actors. I've seen how informed trading actually improves price accuracy on these platforms, which benefits everyone, not just traders. Addressing Question 29 from your ANPR, I believe informed traders contribute to better price discovery, and the focus should be on enforcing existing laws against manipulation rather than imposing broad restrictions.
I'm also concerned about freedom to participate. Prediction markets let regular people like me have a stake in understanding and forecasting real-world events. Shutting that down would limit access to valuable information and tools, especially for those of us outside big financial institutions. In response to Question 7 on public interest, I urge you to balance innovation with consumer protection by supporting regulated markets rather than prohibitive rules.
In closing, I ask the CFTC to adopt proportionate regulations for prediction markets. Don't ban or overly restrict them. Keep the U.S. at the forefront of financial innovation, protect consumers through oversight, and recognize the real economic value of event contracts. Thank you for considering my input.
Sincerely,
Tyler Thalman
