Comment Text:
Dear Chairman and Commissioners,
My name is Memphis Carter, and I'm a small business owner from Texas. Im writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on platforms like Kalshi, and I strongly support the development of well-regulated prediction markets in the United States. For me, its not just a source of fun, cheap entertainment, but also a valuable tool that provides insights I cant get elsewhere.
As someone running a business, I rely on good information to make decisions. Prediction markets give me a unique perspective on events that impact my livelihood, like economic policies or election outcomes. The price signals on these platforms often cut through the noise of pundits and polls, helping me plan better. This isnt just useful for me, its a public good. Better information helps everyone, from business owners like myself to everyday folks trying to understand whats coming next. I also see this as a matter of fairness. If only big institutions can access these markets, they keep all the insights. Letting regular people like me participate makes the system more democratic and the data more accurate.
I want to address a few specific concerns tied to your questions in the ANPR. On the idea of classifying event contracts as gaming (around Questions 15-22), I strongly disagree. Trading on prediction markets isnt a roll of the dice. It takes research and judgment, just like investing in stocks or commodities. These contracts serve real economic purposes, like hedging risks tied to policy changes that affect my business costs. Theyre not gambling, and treating them as such would be a mistake. On consumer protection (Questions 7-14), I believe regulation is the answer, not bans. Platforms like Kalshi, under CFTC oversight, are far safer than unregulated offshore sites. If you over-restrict or ban these markets, people will just go elsewhere, to less safe venues. Thats not protecting anyone.
I also think the U.S. should be a leader in financial innovation (relevant to Questions 7-14 as well). Why let other countries take the lead? We have the chance to set the standard here. And on manipulation or insider trading worries (Questions 29-32), Ill point out that the CFTC already has powerful tools to tackle bad actors. Use those instead of broad bans that punish law-abiding traders like me. Targeted, proportionate rules make way more sense than categorical restrictions.
I urge you to support regulated prediction markets with fair, balanced rules. Dont ban or over-restrict them. Keep platforms like Kalshi accessible to people like me, under your oversight, so we dont get pushed to riskier offshore alternatives. Thanks for considering my input.
Sincerely,
Memphis Carter
