Comment Text:
Dear Chairman and Commissioners,
My name is Jude Schaffer, and I'm just an everyday citizen from Minnesota. I'm 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 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 in a legal and safe way.
I got into prediction markets because they give me a chance to engage with events that affect my life, like elections or economic decisions, in a way that's more direct than just watching the news. The information I get from market prices often feels sharper than what I hear from pundits or polls. It's not gambling to me. It takes real thought and research, just like any other kind of investing. I think it's valuable for regular folks to have access to this, not just big institutions. When everyday people can trade, the prices reflect a wider range of views, and that benefits everyone.
What I care about most is keeping the freedom to participate in legal, regulated markets. Platforms like Kalshi, which operate under CFTC oversight, are a safe space for people like me to trade. I've looked at some offshore platforms out of curiosity, and they're a mess. No oversight, no accountability, and plenty of horror stories about people losing money with no recourse. If the CFTC over-restricts or bans prediction markets here, I worry that activity will just get pushed to those unregulated sites. That would be worse for everyone. Regulated markets keep things transparent and protect users, and I'd rather trade on a platform I know is being watched by a agency like yours.
Looking at some of the questions in the ANPR, I want to address Question 7 under Public Interest. I believe prediction markets serve the public good by providing unique information and letting regular citizens hedge against uncertainty. But I get that there are concerns about consumer protection. I think the answer is to keep platforms regulated, not to shut them down. And on Question 23 under Procedural Aspects, I'd urge the CFTC to make public interest determinations with a focus on keeping legal markets accessible, not just blocking categories outright.
I know there are risks, like potential manipulation or insider trading. But those are already illegal, and the CFTC has tools to deal with bad actors. Punishing everyone by restricting these markets doesn't seem fair. I'm asking you to support proportionate regulation that lets prediction markets operate under clear rules, without over-restricting or banning them. Keep platforms like Kalshi available for people like me, and keep the focus on oversight rather than pushing activity offshore.
Thank you for considering my perspective.
Sincerely,
Jude Schaffer
