Comment Text:
Dear Chairman and Commissioners,
My name is Austin Tuzzo, and I'm a trader and investor based in Florida. I've been actively trading on prediction markets like Kalshi for a while now, and Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I strongly support the development of well-regulated prediction markets in the United States, and I want to share why I believe they are valuable to people like me and to society as a whole.
As a trader, Ive seen firsthand how prediction markets provide information you just cant get from polls or pundits. Whether its forecasting election outcomes or other public events, the prices on these platforms often cut through the noise and give a clearer picture of whats likely to happen. Thats not just helpful for traders; its useful for anyone making decisions based on those events, from businesses to everyday citizens. I also value the freedom to participate in legal, regulated markets like Kalshi. These platforms are transparent and safe, unlike unregulated offshore sites where theres no oversight. Banning or over-restricting prediction markets would just push activity to those riskier venues, which helps no one.
I want to address a couple of concerns I know the CFTC is wrestling with, especially around whether event contracts are gaming. I dont see it that way at all. Trading on these markets takes research and judgment about real-world events, much like trading stocks or commodities. These contracts serve legitimate economic purposes, like price discovery and hedging against uncertainty. Classifying them as gambling would be a misstep. Also, I believe informed trading actually improves price discovery, benefiting all participants. Shutting down markets to stop a few bad actors, like potential insiders, feels like overkill when the CFTC already has tools to tackle manipulation and insider trading.
On specific questions in the ANPR, Id like to weigh in on a few from Topic B, like Question 7 about balancing innovation and consumer protection. I think the US has a chance to lead in financial innovation here. If we over-regulate or ban these markets, were just ceding ground to other countries. And on Topic C, Question 15 about defining gaming versus legitimate markets, I urge you to recognize the real economic value of event contracts. Theyre not bets; theyre tools for understanding and managing risk.
Im not blind to the risks, but I believe proportionate, targeted regulation is the answer, not broad bans. The CFTC can adapt its existing safeguards to address specific issues without throwing out the baby with the bathwater. Please support a framework that allows prediction markets to thrive under fair oversight. Lets keep the US at the forefront of financial innovation and ensure traders like me can participate in safe, regulated spaces.
Thank you for considering my input.
Sincerely,
Austin Tuzzo
