Comment Text:
Dear Chairman and Commissioners,
My name is Logan Kyle, and I'm a student 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 actively trading on platforms like Kalshi and Polymarket for a while now, and I strongly support the development of well-regulated prediction markets in the United States. I believe they offer unique value to people like me and to society as a whole, and I hope the CFTC will craft rules that allow these markets to thrive without unnecessary restrictions.
As a student, I don't have a huge budget, but trading on prediction markets has given me a way to engage with real-world events in a meaningful way. I can put my research skills to use, analyzing data and news to make informed trades on outcomes like elections or economic indicators. I've noticed that the forecasts on these platforms are often more accurate than polls or pundit predictions you see on TV. That kind of aggregated insight isn't just useful for traders, it helps everyone better understand what's likely to happen. I think that's a public good worth protecting.
I also value the ability to hedge personal financial risks through these markets. For instance, I've used them to offset potential impacts from policy changes or economic shifts that could affect my student loans or future job prospects. It's not gambling, it's a practical tool for managing uncertainty, much like any other investment. I'm particularly glad to use regulated platforms like Kalshi, which operate under CFTC oversight. Knowing there's accountability and transparency makes me feel safer compared to unregulated offshore sites. If the CFTC over-restricts or bans these markets, I worry that activity will just move to those less safe platforms, where there's no protection for users like me.
Regarding some of the specific questions in the ANPR, Id like to address Question 11 under Public Interest. I believe prediction markets serve the public by providing valuable information through price discovery, and the CFTC should prioritize rules that encourage participation while maintaining oversight. On Question 29 under Inside Information, I think informed trading actually improves price accuracy and benefits all participants, as long as existing laws against insider trading are enforced. There's no need to ban entire markets to address bad actors, just use the tools you already have.
I urge the CFTC to support proportionate regulation that allows everyday people like me to participate in legal, regulated prediction markets. Please don't impose broad bans or restrictions that would push activity offshore and undermine the benefits these markets provide. Thank you for considering my perspective.
Sincerely,
Logan Kyle
