Comment Text:
Dear Chairman and Commissioners,
My name is Nathan Maxwell, and I'm just an everyday citizen from Tennessee. I'm writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on platforms like Kalshi, and I strongly support the idea of well-regulated prediction markets in the United States.
I got into trading on prediction markets because they give me a way to engage with events that affect my life, like elections or economic decisions. It's not just about making a few bucks; it's about having access to information and forecasts that I can't find anywhere else. These markets often predict outcomes better than polls or news pundits, and that helps me make better decisions for myself and my family. I also believe that letting regular folks like me participate makes the system fairer. If only big institutions get to play, they keep all the insights to themselves. That's not right.
What worries me most is the idea of banning or over-restricting these markets. I've seen what happens when things get pushed underground or offshore. Unregulated platforms are out there, and they're not safe. They don't have the oversight or consumer protections that a regulated market like Kalshi offers under the CFTC's watch. If you make it too hard for legitimate markets to operate here, people like me will still seek out these tools, but we'll end up on sketchy foreign sites with no accountability. Regulation, not restriction, is the way to protect consumers.
I also think the U.S. should be leading the charge on financial innovation. We shouldn't be handing this space over to other countries by making it impossible for prediction markets to thrive here. Let's set the standard for how these markets can work responsibly. I'm particularly drawn to your questions 7 through 14 on balancing innovation with consumer protection. I believe the CFTC can strike that balance by focusing on strong oversight of registered platforms instead of broad bans. And in questions 23 to 28 on procedural aspects, I'd urge you to avoid categorical prohibitions and instead evaluate markets case by case to ensure they serve the public interest.
I understand there are concerns about manipulation or insider trading, but those issues are already illegal and within the CFTC's power to address. Punishing everyone by shutting down these markets isn't the answer. I hope you'll support proportionate regulation that keeps prediction markets accessible to everyday Americans like me, while ensuring they're safe and transparent.
Thank you for considering my perspective.
Sincerely,
Nathan Maxwell
