Comment Text:
Dear Chairman and Commissioners,
My name is Alex Slaughter, and I'm a journalist based in New Jersey. Ive spent years covering politics and public events, always hunting for the most reliable signals about whats coming next. Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516, to express my support for well-regulated prediction markets. I believe they are a vital tool for accurate forecasting, especially in my line of work, and I urge the CFTC to craft rules that support their growth while addressing legitimate risks.
As a journalist, I rely on data to tell stories and inform the public. Prediction markets have consistently provided insights that polls and pundits often miss. I dont trade on these platforms myself, but I follow them closely for my reporting. Whether its an election outcome or a major policy shift, the aggregated wisdom of these markets cuts through noise in a way few other sources can. This isnt just helpful for me; its valuable for anyone trying to understand the world, from voters to policymakers. I see this as a public good, not a game or a gamble.
One thing Im particularly concerned about is where this activity happens. Regulated platforms like Kalshi, operating under CFTC oversight as a designated contract market, offer transparency and accountability that unregulated offshore platforms simply dont. If the CFTC over-restricts or bans certain event contracts, I worry that activity will just move to less safe, less monitored spaces. Ive seen how offshore platforms operate with little regard for consumer protection or data integrity. Pushing people there by limiting regulated options would be a step backward. Instead, lets keep this innovation in a space where rules apply and bad actors can be held accountable.
I also want to address some of the CFTCs specific questions, particularly from the Public Interest section, like Question 7 on balancing innovation and consumer protection. I think the answer lies in targeted oversight, not broad prohibitions. Prediction markets arent gambling; theyre a tool for information and risk management. And on Question 29 from the Inside Information section, I believe the existing laws against insider trading by federal employees are already a strong deterrent. The CFTC should focus on enforcing those rules rather than restricting entire markets to prevent a few bad actors.
Im not blind to the risks. Manipulation and misinformation are real concerns in any market, including these. But the CFTC already has powerful tools to combat fraud and manipulation in other derivatives markets. Adapt those tools here. Dont punish the many for the actions of a few.
In closing, I ask the CFTC to support proportionate regulation of prediction markets. Encourage innovation under clear rules, keep activity on regulated platforms, and protect the publics access to this unique source of information. Thank you for considering my perspective.
Sincerely,
Alex Slaughter
