Comment Text:
Dear Chairman and Commissioners,
My name is David Sam, and I'm a trader and investor from New Mexico. I'm still learning the ropes of trading, and Ive found platforms like Kalshi to be incredibly helpful in understanding how markets work. Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516) to express my support for well-regulated prediction markets. I believe they provide real value, both to me personally and to society, and I urge the CFTC to craft rules that allow these markets to thrive without over-restricting or banning them.
As someone who actively trades on prediction markets like Kalshi, Ive seen firsthand how they offer unique information you cant get from polls or pundits. The prices reflect what people really think about events, whether its an election or an economic indicator, and thats helped me make better decisions in my own trading. Its not just useful for traders like me; I think the public benefits when this kind of aggregated insight is available. Its a tool for better decision-making, plain and simple. On top of that, I dont see trading event contracts as gambling. It takes research and judgment, just like trading stocks or commodities. These contracts serve real economic purposes, like price discovery, and labeling them as gaming feels off base.
One thing Im worried about is the idea of banning or heavily restricting these markets. I trade on Kalshi because its regulated and safe. If prediction markets get pushed out of the U.S. or over-regulated, people like me will just turn to offshore platforms that dont have the same oversight. Thats not safer for anyone. Regulated markets under the CFTCs watch are the better option, and I hope youll keep that in mind.
I also want to address some of the specific questions in the ANPR. Regarding Question 7 under Public Interest, about balancing innovation and consumer protection, I think allowing platforms like Kalshi to operate with clear rules strikes the right balance. And for Question 15 under Listed Activities, on defining gaming versus legitimate markets, I strongly feel that event contracts arent gambling when theyre tied to real-world outcomes and used for price discovery or hedging.
Im not saying there arent risks. I know insider trading or manipulation could be issues, but those are already illegal, and the CFTC has tools to handle them. Shutting down or over-restricting prediction markets punishes everyone for the actions of a few bad actors. Please focus on targeted rules instead of broad bans. I want the freedom to participate in legal, regulated markets like these, and I believe they can be a force for good if handled right.
Thank you for considering my input. I urge the CFTC to support proportionate regulation of prediction markets and avoid restrictions that would push activity offshore.
Sincerely,
David Sam
