Comment Text:
Dear Chairman and Commissioners,
My name is Nyerere Partee Jr., and I'm an everyday citizen from Washington state. I'm writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on regulated platforms like Kalshi, and I strongly support the CFTC crafting fair, proportionate rules for prediction markets rather than banning or over-restricting them.
I've seen firsthand how prediction markets provide information you can't get anywhere else. For elections and major public events, their forecasts often beat polls and pundits by a wide margin. That accuracy helps me make better decisions, and I believe it benefits society as a whole by improving price discovery. Whether it's understanding the odds of a policy change that affects my taxes or a Federal Reserve decision impacting my budget, these markets give me a clearer picture of the future. They're not just for traders; the data they produce helps everyone, from journalists to policymakers.
I also value the freedom to participate in legal, regulated markets. Platforms like Kalshi, under CFTC oversight, are far safer than unregulated offshore alternatives. If the U.S. cracks down too hard, people like me will get pushed to less secure venues with no consumer protections. Thats a step backward. Plus, I use these markets to hedge real financial risks. For example, Ive traded contracts tied to economic indicators like CPI to offset worries about rising costs in my household budget. This isnt gambling; its a practical tool, much like any other investment or insurance product. Classifying event contracts as "gaming" ignores their legitimate economic purpose, and I urge the CFTC to recognize this in response to questions 15-22 on listed activities.
On the topic of manipulation and insider trading, raised in questions 29-32, I believe the CFTC already has strong tools to tackle bad actors. Those laws are in place, so lets enforce them instead of punishing everyone with broad bans. Informed trading actually improves price discovery, making markets more accurate for all of us. And honestly, banning prediction markets wont stop the demand; itll just send innovation and activity overseas. The U.S. should lead in financial innovation, not cede ground to other countries. Im all for consumer protection, but lets do it through smart regulation, not heavy-handed restrictions.
In response to questions 7-14 on public interest, Id argue that well-regulated prediction markets balance innovation with safety. Academic research backs this up, showing how these platforms aggregate information efficiently. Proportionate rules, targeting specific risks instead of whole categories, are the way to go.
I respectfully ask the CFTC to support prediction markets with fair, targeted regulations that keep them accessible, safe, and innovative. Dont let over-restriction push this valuable tool out of reach for everyday folks like me.
Sincerely,
Nyerere Partee Jr.
