Comment Text:
Dear Chairman and Commissioners,
My name is Jacob Coons, 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. Ive been actively trading on platforms like Kalshi, and I strongly support the idea of well-regulated prediction markets in the United States.
I believe in the freedom to participate in legal, regulated markets. My ancestors came here in 1776 for liberty, not to have someone else dictate what we can and can't do. Amen to that. Prediction markets give regular folks like me a chance to engage with real-world events in a meaningful way. Theyre not just a game; they provide information you can't find anywhere else. Ive seen firsthand how these markets often predict outcomes more accurately than polls or pundits. That kind of insight helps everyone, not just traders, by shedding light on what might happen with elections, economic shifts, or other big events.
I also think regulated markets are the way to go. Platforms like Kalshi, under CFTC oversight, are far safer than unregulated offshore sites. If we ban or over-restrict these markets, people won't just stop trading. Theyll go to sketchy platforms with no protections. Thats not solving a problem; its creating a worse one. The U.S. should be leading the charge in financial innovation, not handing the advantage to other countries. Weve got the chance to set the standard here.
On the flip side, I get the concerns about manipulation or insider trading. But the CFTC already has strong tools to tackle those issues in other markets. Use them here too. Don't punish everyone by shutting down something valuable because a few might cheat. And lets be clear: event contracts arent gambling. They serve real purposes, like hedging risks or discovering prices. Ive used them to think through how policy changes might hit my wallet. Thats not a slot machine; its a tool. Plus, when informed traders participate, the prices get sharper, and we all benefit from better data. Academic research backs this up, showing how prediction markets improve transparency and decision-making.
Id like to address a couple of specific questions from the ANPR. On Question 7, about balancing innovation and consumer protection, I think regulation is the answer, not restriction. Keep markets like Kalshi safe and open. On Question 15, regarding defining gaming versus legitimate markets, I urge you to see event contracts as economic tools, not games of chance. Theyre about real-world outcomes and real stakes.
In closing, I ask the CFTC to support proportionate regulation of prediction markets. Dont ban or over-restrict them. Let regular people like me keep participating in a system thats fair, transparent, and innovative, right here in the U.S.
Sincerely,
Jacob Coons
