Comment Text:
Dear Chairman and Commissioners,
My name is Ricky White, and I'm a business owner from Texas. I run a small logistics company here, dealing with shipping and supply chain challenges every day. I'm writing to express my strong support for the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe well-regulated prediction markets are a valuable tool for people like me, and I hope the CFTC will create rules that allow them to thrive without unnecessary restrictions.
I've been trading on platforms like Kalshi for a couple of years now, and I can tell you firsthand how useful these markets are for hedging real financial risks. For my business, a lot of uncertainty comes from things like fuel prices, interest rates, or even policy changes after elections. Last year, I used a prediction market to hedge against a potential tariff increase that could have hit my shipping costs hard. The ability to lock in some certainty, even if it's just a small position, helps me plan better and protect my bottom line. It's not gambling. It's a practical way to manage risks that I can't control otherwise.
I also think these markets are good for society. They pull together information in a way that nothing else does. I've seen prediction market prices be more accurate than news forecasts or expert opinions, especially on big events like elections or economic data releases. That kind of insight shouldn't just be for Wall Street. Regular folks like me, and my employees, should have access too. It levels the playing field a bit.
I'm aware there are concerns about things like insider trading or manipulation, and I get that. But those issues are already illegal, right? The CFTC has the power to crack down on bad actors without shutting down the whole market. Banning or over-restricting prediction markets would hurt small business owners like me who use them responsibly. It'd be like closing a highway because a few people speed. Just enforce the rules you've already got.
I noticed a few questions in the ANPR that relate to my experience. On Question 8, about balancing innovation and consumer protection, I think the focus should be on clear rules for platforms, not broad bans. And on Question 16, about what kinds of contracts serve a legitimate purpose, I'd argue that anything tied to real economic risks, like tariffs or interest rates, absolutely does. These aren't games, they're tools.
I urge the CFTC to support proportionate regulation of prediction markets. Don't let a few potential bad actors ruin a system that helps businesses and individuals manage uncertainty. Keep these markets accessible and regulated right here in the U.S., where oversight is strong. Thank you for considering my input.
Sincerely,
Ricky White
