Comment Text:
Dear Chairman and Commissioners,
My name is Christopher Lewis, and I'm a regular citizen from Florida. I'm writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I'm not a lawyer or a financial expert, just someone who's found real value in using prediction markets, and I want to urge the CFTC to support proportionate regulation rather than overly restrictive rules or bans.
I'm in the process of starting a small business here in Florida, and prediction markets like Kalshi have been incredibly helpful in keeping me informed and making better decisions. Whether it's gauging the likelihood of policy changes that could affect my taxes or understanding economic trends that might impact my startup costs, these markets give me insights I can't find anywhere else. Beyond that, since I started trading on platforms like Kalshi and Polymarket, I've become so much more aware of what's happening in the world, from politics to tech to business. I can say with absolute certainty that this has been a positive force in my life. Prediction markets aren't just a tool for me; they've made me a more engaged and informed person.
I strongly believe that everyday people like me should have the freedom to participate in legal, regulated markets. These aren't gambling platforms. Trading on prediction markets takes research and judgment, just like investing in stocks. Classifying event contracts as "gaming" ignores the real economic purpose they serve, like helping individuals and businesses hedge risks. For instance, I can hedge against outcomes that might affect my small business, and that's no different from a farmer hedging crop prices. Plus, informed trading actually improves price discovery, which benefits everyone, not just traders.
I understand there are concerns about manipulation or insider trading, but the CFTC already has strong tools to address those issues in other markets. There's no need for broad bans or heavy restrictions that would push activity to unregulated offshore platforms. I've seen how regulated markets like Kalshi operate with transparency and oversight, and that's far safer than driving people to less accountable venues. The answer isn't to over-restrict; it's to apply targeted, proportionate rules that tackle specific risks without punishing everyone.
I'd like to address a couple of specific questions from the ANPR. On Question 8, regarding public interest, I believe prediction markets serve the public by providing unique information and hedging opportunities. And on Question 29, about inside information, I think informed traders help make prices more accurate, and existing laws already prohibit misuse of nonpublic information. The focus should be on enforcing those rules, not banning entire markets.
I respectfully ask the CFTC to support well-regulated prediction markets with fair, balanced rules. Don't let over-restriction or categorical bans limit access for regular folks like me who benefit from these tools. Thank you for considering my perspective.
Sincerely,
Christopher Lewis
