Comment Text:
Dear Chairman and Commissioners,
My name is Russell Lucas, and I'm a welder from Oklahoma. I'm writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I'm not an expert or a financial bigwig, just a regular guy who has found prediction markets like Kalshi interesting and useful. I actively trade on these platforms, mostly sticking to the 15-minute crypto market predictions, and I want to share why I think these markets should be supported with fair regulation, not heavy restrictions.
I value my freedom to participate in legal, regulated markets like Kalshi. It's a safe space to engage with financial tools that feel accessible to someone like me, not just Wall Street types. I've seen how these platforms can help regular folks hedge against personal financial risks. For instance, I can use short-term crypto predictions to offset some of the uncertainty in my savings or side investments. This isn't gambling to me; it's a practical way to manage risk with real research and thought behind each trade. Classifying event contracts as "gaming" feels wrong when they serve legitimate purposes like this. I hope the CFTC considers this in response to Questions 15-22 about listed activities and how to define these markets.
I'm also worried that over-regulating or banning these markets will push people like me to unregulated offshore platforms. I've looked at some of those sites, and they don't have the oversight or protections that a CFTC-registered market like Kalshi offers. Keeping these markets regulated in the U.S. ensures safety for participants and keeps America competitive in financial innovation. We shouldn't let other countries take the lead on this. I think this ties into Questions 7-14 on balancing innovation and public interest, and I urge you to prioritize keeping these markets accessible here.
Another point I care about is how informed trading actually helps everyone. When people who know something trade, the prices on prediction markets get sharper and more accurate. That benefits me even if I'm not the expert, because I can see better data to make my own decisions. I don't think the answer to insider trading worries is shutting down markets; it's enforcing the laws we already have. This connects to Questions 29-32 on inside information, and I believe the CFTC should focus on policing bad actors, not restricting the whole system.
I understand there are risks like manipulation or misuse, but the CFTC already has tools to handle those in other markets. Let's adapt them here instead of over-reacting with bans. I'm asking you to support proportionate regulation of prediction markets so people like me can keep participating safely and legally. Don't let heavy-handed rules push us out or offshore.
Thank you for considering my thoughts.
Sincerely,
Russell Lucas
