Comment Text:
Dear Chairman and Commissioners,
My name is Cody Rush, and I'm a trader and investor from Oklahoma. I'm writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've been actively trading on platforms like Kalshi, and I want to share why I strongly support well-regulated prediction markets. I'm tired of seeing folks in government, especially those out of touch with regular people, trying to control everything under the guise of morality. I believe I should have the freedom to decide what to do with my own money, especially in legal, regulated spaces.
Prediction markets aren't just a hobby for me. They're a tool. I use them to hedge risks and make informed decisions based on real-world events, whether it's an election outcome affecting my taxes or a Fed decision impacting my investments. This isn't gambling, no matter what some might say. It takes research and judgment, just like trading stocks or commodities. Classifying event contracts as "gaming" ignores their legitimate economic purpose, like price discovery and risk management. I urge you to consider this when addressing questions 15 through 22 in the ANPR about defining gaming versus legitimate markets.
I also want to stress that regulated markets like Kalshi are a much safer option than the alternative. If you ban or over-restrict these platforms, you're not stopping the activity. You're just pushing it offshore to unregulated sites where there's no oversight, no consumer protection, nothing. I've seen what happens when people have no legal options. They don't stop, they just go to sketchy places. Regulation keeps us safe and keeps the activity transparent. This ties directly to questions 7 through 14 on balancing innovation with consumer protection. I believe the CFTC can protect consumers by regulating these markets, not by shutting them down.
I'm not blind to the risks. I get that manipulation or insider trading could be issues. But the answer isn't broad bans or heavy-handed rules. It's targeted regulation. Focus on the bad actors, not the entire market. The CFTC already has tools to handle fraud and manipulation in other derivatives. Use those for prediction markets too. Questions 29 through 32 in the ANPR ask about insider trading risks. I think the existing laws against it, plus strong enforcement, are enough without punishing everyone else.
The government shouldn't be telling me what I can and can't do with my money in a legal, regulated space. I ask you to support proportionate regulation of prediction markets. Don't ban them or pile on restrictions that push folks like me to unsafe, offshore platforms. Keep these markets fair, transparent, and accessible to regular traders.
Thank you for considering my perspective.
Sincerely,
Cody Rush
