Comment Text:
Dear Chairman and Commissioners,
My name is Valen Buszko, and I'm a trader and investor from Florida. 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, as published in 91 FR 12516. As someone who actively trades on platforms like Kalshi, Ive seen firsthand how valuable these markets are, and I believe the CFTC has a real opportunity to foster innovation while protecting consumers.
Prediction markets arent just a niche interest for me, theyre a tool that provides insights I cant get anywhere else. Ive used Kalshi to trade on election outcomes and other public events, and the forecasts from these platforms consistently beat polls and pundits. That accuracy isnt just useful for traders like me, its a public good. It helps everyone, from regular folks to policymakers, make sense of an uncertain world. I cant overstate how important it is to have access to this kind of aggregated information.
What sets prediction markets apart, especially regulated ones like Kalshi, is their fairness. Unlike sportsbooks or casinos, which openly punish successful players and curb winnings, platforms like Kalshi and Polymarket operate as free markets. They take their profits from slippage or small fees, not by scamming participants. Ive been frustrated by traditional gambling institutions that seem designed to take advantage of innocent people. Prediction markets are different, and they shouldnt be lumped in with those corrupt systems or replaced by them.
Im also worried about what happens if these markets get banned or over-restricted. If the CFTC clamps down too hard, activity will just move to unregulated offshore platforms. Those are far less safe, with no oversight to protect traders. Regulated markets under CFTC supervision are the better choice by a mile. On a broader level, I think the US needs to lead in financial innovation. If we stifle prediction markets here, other countries will step in and take the lead. We cant afford to fall behind.
Id like to address a couple of specific questions from the ANPR. Regarding Question 7 on balancing innovation and consumer protection, I believe the CFTC can achieve both by focusing on targeted rules for manipulation and insider trading, not broad bans. And for Question 15 on defining legitimate markets, I urge you to recognize that prediction markets serve a real economic purpose through forecasting and risk management, not gambling.
In closing, I ask the CFTC to support the growth of prediction markets with fair, proportionate regulations. Dont ban or overly restrict them. These markets are too valuable to lose, both for traders like me and for society as a whole. Thank you for considering my perspective.
Sincerely,
Valen Buszko
