Comment Text:
Dear Chairman and Commissioners,
Im writing to you as a business owner from Arizona and the operator of Meridian, a trading terminal built exclusively on Kalshi, a CFTC-regulated exchange. Im also a daily user of prediction markets, and Im submitting this comment in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I strongly support a clear, proportionate framework for regulating these markets, and I want to share why they matter to me personally and professionally.
Ill be upfront about my story. Ive lived through addiction and incarceration, and building a legitimate business on a regulated U.S. exchange like Kalshi has been a cornerstone of turning my life around. For someone with my background, the difference between onshore, transparent markets with CFTC oversight and the unregulated offshore alternatives isnt just theoretical. Its the reason I can participate honestly and build something real. Meridian exists because of that regulated environment, and Im proof that these markets can create opportunities for regular people, not just big institutions.
From my seat as an operator, I can tell you Kalshi works. The order books are real, settlements happen cleanly, customer funds are segregated, and the rules are straightforward. It feels more like a traditional exchange than anything in the offshore or crypto space. Prediction markets like this do two things incredibly well: they generate sharper forecasts on real-world events than polls or pundits, and they let people like me hedge risks that impact our lives and businesses. Ive used these markets to manage exposure tied to economic events, like inflation data that affects my costs, and I know others who hedge political outcomes impacting their operations. This isnt gambling. Its research, judgment, and real economic purpose, just like trading stocks or commodities.
Im particularly drawn to questions 7-14 in the ANPR about public interest and balancing innovation with consumer protection. Prediction markets provide unique information that benefits everyone, not just traders. Their accuracy on elections and public events often beats traditional sources, helping inform better decisions. But if the CFTC over-restricts or bans these markets, that demand wont disappear. Itll just move offshore to platforms with no oversight, no fund segregation, and no manipulation safeguards. Ive seen the other side, and I can tell you regulated markets are far safer. The U.S. should lead in financial innovation, not cede it to other countries.
On questions 29-32 about inside information, I believe informed trading actually improves price discovery for everyone. And lets be clear, insider trading and manipulation are already illegal. The CFTC has strong tools to enforce against bad actors without punishing the rest of us through broad bans. Targeted rules make more sense than categorical restrictions.
I urge the Commission to build a workable framework that keeps prediction markets onshore, regulated, and accessible to retail participants. Kalshi has shown this can be done responsibly, and businesses like mine depend on it. Thank you for considering my input.
Sincerely,
Oleksandr Bannick
Operator, Meridian Trading Terminal
