Comment Text:
Dear Chairman and Commissioners,
My name is Sopiko Kharadze, and I'm an everyday citizen from California writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've been actively trading on regulated prediction markets like Kalshi for a while now, and I strongly support the idea of well-regulated markets that allow people like me to participate legally and safely.
I believe prediction markets are valuable, not just for traders but for everyone. They provide unique information through prices that often predict outcomes better than polls or experts. As someone who trades on Kalshi, I put in real effort to research and understand the events I'm betting on, whether it's an election or an economic indicator. This isn't gambling in my view. It's a process of analysis and judgment, much like investing in stocks. Classifying event contracts as "gaming" feels wrong to me because they serve real economic purposes, like helping me hedge against uncertainties that affect my personal finances. I urge the CFTC to recognize this distinction when addressing questions 15 through 22 on listed activities.
I'm also worried about what happens if these markets are over-restricted or banned. I've seen unregulated offshore platforms out there, and they're nowhere near as safe or transparent as a CFTC-regulated market like Kalshi. If the U.S. pushes too hard with restrictions, people will just turn to those offshore sites, and that helps no one. The U.S. should be leading the way in financial innovation, not handing that advantage to other countries. I think this ties directly to questions 7 through 14 on balancing innovation and consumer protection. Regulation should encourage safe participation, not drive it underground.
On the topic of informed trading, which I see in questions 29 through 32, I believe traders with good information make the market better for everyone. Their trades improve price discovery, and that benefits all participants, not just them. Of course, insider trading by federal officials or others with unfair access is a concern, but that's already illegal. The CFTC has tools to tackle bad actors without punishing the rest of us. I think the focus should be on targeted, proportionate rules, not broad bans that wipe out entire categories of contracts.
I just want to keep participating in a legal, regulated space where my voice and analysis can contribute to something bigger. Please support rules that allow prediction markets to thrive under fair oversight. Don't let over-regulation push this valuable tool out of reach for everyday people like me.
Thank you for considering my input.
Sincerely,
Sopiko Kharadze
