Comment Text:
Dear Chairman and Commissioners,
My name is Alex Kochanowski, and I'm just a regular citizen from Louisiana writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've been trading on platforms like Kalshi for a while now, and I strongly support the idea of well-regulated prediction markets. I hope the CFTC will create rules that let everyday people like me continue to participate without over-restricting or banning these markets.
I got into prediction markets because they give me a way to hedge against risks that affect my life. For example, I run a small side business selling handmade goods at local markets, and election outcomes or policy changes can impact taxes or regulations that hit my bottom line. Trading on Kalshi lets me offset some of that uncertainty. It's not gambling to me; it's practical. I have to research candidates, read up on policies, and think hard about what might happen. That's no different from how people invest in stocks or commodities. Plus, the prices on these markets often tell me things I can't find in news or polls. They're a unique source of insight, and I think that's valuable for everyone, not just traders.
What worries me is the idea of banning or over-restricting these markets. If the CFTC makes it too hard to trade on regulated platforms like Kalshi, people aren't going to stop trading. They'll just go to offshore sites with no oversight, no consumer protections, and no accountability. I've seen friends dabble in unregulated platforms, and it's a mess. Regulated markets are safer, and the CFTC already has tools to stop manipulation or insider trading. Use those tools instead of punishing regular folks like me who want to participate legally. I also think it's only fair to let everyday people have access to these markets, not just big institutions. Keeping us out means the information and benefits stay with the elites, and that's not right.
Looking at some of the questions in the ANPR, I want to touch on a couple. On Question 7, about balancing innovation and consumer protection, I believe regulated prediction markets strike that balance by letting innovation happen while keeping safeguards in place. And on Question 15, about defining gaming versus legitimate markets, I urge you to see event contracts as economic tools for hedging and price discovery, not as games of chance.
I'm asking the CFTC to support proportionate regulation of prediction markets. Don't ban or overly restrict them. Create rules that address real risks like manipulation but let law-abiding citizens continue to trade on safe, regulated platforms. Thank you for considering my perspective.
Sincerely,
Alex Kochanowski
