Comment Text:
Dear Chairman and Commissioners,
My name is Joey Peterson, and I'm a landscaper from Minnesota, just an everyday guy trying to make a living. I'm writing to you about the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I'm not a financial expert or a rocket scientist, but I've been actively trading on platforms like Kalshi, and I strongly support well-regulated prediction markets. I believe theyre a valuable tool for regular folks like me, and I want to share why I think the CFTC should regulate them proportionately, not ban or over-restrict them.
As a landscaper, my income can swing a lot based on things I cant control, like weather patterns or economic policies tied to elections. Trading on prediction markets has let me hedge some of that uncertainty. For instance, Ive placed trades on election outcomes that could affect small business taxes or regulations that hit my bottom line. Its not just about making a quick buck. This app has helped me, a regular person, make more money than just working my day job. Sure, you can take a loss, and I have. But if you put in the time to research and think through your trades, its a real tool to manage risks or even get ahead. If someone like me can do this, I think everyone should have the chance to participate in a legal, regulated market.
I also value the information these markets provide. Ive seen firsthand how prediction market prices often beat out polls or TV pundits when it comes to forecasting elections or other big events. That kind of insight isnt just useful for traders; its good for the public and even policymakers who need better data to make decisions. On top of that, I believe informed trading makes prices more accurate, which helps everyone, not just those of us in the market.
I know there are concerns about manipulation or insider trading, and I get that. But the CFTC already has strong tools to tackle those issues in other markets, and I think they can adapt them here without broad bans. Shutting down or over-restricting prediction markets would just push activity to unregulated offshore platforms, which are way riskier for consumers like me. Look at Kalshi, a regulated platform. Thats the kind of safe space I want to trade in, not some sketchy overseas site. And honestly, calling these event contracts gaming feels wrong. Theyre not gambling; they serve real purposes like hedging and price discovery, just like other investments.
Im also worried that if the US clamps down too hard, well lose ground to other countries in financial innovation. We should be leading the way, not ceding the field. So, in response to questions like 7 and 8 on public interest, and 15 and 16 on defining activities, I urge you to focus on targeted rules that address specific risks rather than sweeping prohibitions. Let regular people participate, keep markets regulated and safe, and dont let fear of a few bad actors punish the rest of us.
Thank you for considering my perspective. I hope the CFTC supports proportionate regulation of prediction markets so they can continue benefiting everyday folks like me.
Sincerely,
Joey Peterson
