Comment Text:
Dear Chairman and Commissioners,
My name is Deborah Snead, and I'm a regular citizen from Michigan. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've been trading on platforms like Kalshi and Polymarket for a while now, and I want to share why I think well-regulated prediction markets are valuable and worth supporting.
As someone who runs a small household budget and worries about unexpected financial hits, I find prediction markets incredibly useful for hedging personal risks. For example, I've used these platforms to bet on economic outcomes like inflation rates or interest rate decisions that directly affect my grocery bills and mortgage payments. When I can put a small amount on a contract that pays out if rates spike, it gives me a bit of a safety net. That's not gambling to me. It's a practical way to manage uncertainty, just like buying insurance or saving for a rainy day. I think a lot of everyday people like me could benefit from this kind of tool if they knew about it and had safe, regulated places to use it.
What really concerns me is the difference between regulated markets and the unregulated ones. I've traded on Kalshi, which is under CFTC oversight as a designated contract market, and it feels much safer. The rules are clear, my funds are protected, and I trust there's someone watching for fraud or manipulation. Compare that to offshore platforms like Polymarket, where there's no real oversight. If something goes wrong, who do I turn to? I've read stories of people losing money on unregulated sites with no recourse. Banning or over-restricting prediction markets in the US would just push people like me to those riskier offshore options. I believe the CFTC can strike a balance by regulating these markets properly instead of shutting them down.
I'd like to address a couple of the specific questions in your ANPR. On Question 7, about balancing innovation and consumer protection, I think regulated markets like Kalshi show that you can have both. They let regular folks participate while having safeguards in place. And on Question 23, about when public interest determinations should happen, I hope you'll consider that broad bans or delays in approving contracts hurt small traders like me who rely on these tools for hedging.
I know there are concerns about insider trading or manipulation, and I get that. But those issues are already illegal, and the CFTC has the power to go after bad actors. Punishing everyone by restricting these markets doesn't seem fair. Please support proportionate regulation of prediction markets. Allow platforms under your oversight to operate with clear rules, so people like me can keep using them safely without being forced to riskier alternatives.
Thank you for considering my input.
Sincerely,
Deborah Snead
