Comment Text:
Dear Chairman and Commissioners,
My name is Devon Truman, and I'm a software engineer from Utah. Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516) to express my strong support for well-regulated prediction markets. As someone who actively trades on platforms like Kalshi, Ive seen firsthand how these markets provide real value, both to me personally and to society at large. I believe the CFTC should focus on proportionate regulation rather than bans or overly restrictive rules.
I got into prediction markets because, as a tech professional, Im always looking for data-driven insights. The prices on these platforms often cut through the noise of pundits and polls, giving me a clearer picture of whats likely to happen, whether its an election outcome or an economic indicator. This isnt just useful for traders like me, its valuable information for everyone. Beyond that, Ive used these markets to hedge personal risks. For example, Ive placed trades on interest rate decisions to offset uncertainties around my mortgage timing. This isnt gambling, its a practical tool, much like trading stocks or commodities. Classifying event contracts as gaming (as discussed in Questions 15-22) ignores their legitimate economic purpose, like hedging and price discovery.
I also worry that banning or over-restricting these markets will push activity to unregulated offshore platforms, which are far less safe. I trade on Kalshi because its a regulated Designated Contract Market under CFTC oversight. That gives me confidence my funds are secure and the market isnt rigged. If the U.S. clamps down, people like me will be forced to less transparent venues, and thats a loss for consumer protection. On a broader level, the U.S. should be leading in financial innovation, not ceding ground to other countries. Prediction markets are a cutting-edge tool, and as a tech worker, I see how they align with the kind of forward-thinking economy we need to build (relevant to Questions 7-14 on public interest and innovation).
Im not blind to the concerns about manipulation or insider trading, as raised in Questions 29-32. But those issues are already illegal under existing laws, and the CFTC has the authority to enforce them. Shutting down entire markets to stop a few bad actors punishes the majority of us who use them responsibly. Instead, I urge you to craft targeted rules that address specific risks without stifling the benefits.
In closing, I ask the CFTC to support proportionate regulation of prediction markets. Allow platforms like Kalshi to operate under clear, fair rules that protect consumers while preserving access for individuals like me. Dont let heavy-handed restrictions drive innovation and activity offshore. Thank you for considering my input.
Sincerely,
Devon Truman
