Comment Text:
Dear Chairman and Commissioners,
My name is Simon Ang, and I'm a trader and investor based in New York. I'm writing to express my strong support for the proportionate regulation of prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). As someone who actively trades on platforms like Kalshi, I've seen firsthand the value these markets provide, and I believe the CFTC has an opportunity to foster innovation while protecting consumers.
I rely on prediction markets for insights that I can't get from polls or pundits. Whether it's an election outcome or a major public event, the prices on these platforms often cut through the noise and give a clearer picture of what's likely to happen. This isn't just useful for me as a trader; it's valuable for anyone making decisions, from business owners to policymakers. I've used these markets to hedge personal financial risks tied to political or economic outcomes, like potential tax changes or regulatory shifts that could impact my investments. That kind of risk management is a real economic benefit, not gambling.
I also believe regulated markets like Kalshi, operating under CFTC oversight, are far safer than the alternative. If heavy restrictions or bans push activity to unregulated offshore platforms, traders like me lose the protections of a transparent, monitored system. The US has a chance to lead in financial innovation here, setting a global standard for how prediction markets should work. If we don't, other countries will step in, and we'll lose both the economic benefits and the ability to shape this space.
Addressing some of your specific questions, I think the CFTC should focus on balancing innovation with consumer protection, as raised in Questions 7-14 under the Public Interest section. Yes, there are risks like manipulation or insider trading, but those are already illegal under existing laws, and the CFTC has the tools to enforce them. Banning or over-restricting these markets to prevent a few bad actors would hurt honest participants and stifle a valuable tool for price discovery. On Questions 15-22 about listed activities, I urge you not to classify prediction markets as "gaming." They serve legitimate purposes like forecasting and hedging, distinct from gambling.
I'm asking the CFTC to support well-regulated prediction markets with targeted rules that address specific risks without broad prohibitions. Let's keep the US at the forefront of financial innovation and ensure these markets remain safe and accessible for traders like me.
Sincerely,
Simon Ang
