Comment Text:
Dear Chairman and Commissioners,
My name is Riley Collett, and I'm a trader and investor based in Texas. I've been actively trading on prediction markets like Kalshi for a while now, and I'm writing to share my support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these markets provide real value to people like me and to society as a whole, and I urge the CFTC to craft rules that allow them to thrive without over-restricting access.
As someone who trades regularly, I can tell you that event contracts are not gambling. They serve genuine economic purposes. When I trade on Kalshi, I'm not just tossing dice. I'm researching, analyzing data, and making informed decisions about real-world events, much like I do with stocks or commodities. These markets let me hedge risks that matter to me, like political outcomes that could impact my investments or economic indicators that affect my financial planning. Labeling this as "gaming" feels like a mischaracterization of the skill and thought that goes into it.
One reason I'm so supportive of regulated platforms like Kalshi is safety. I've seen unregulated offshore prediction markets out there, and they're a mess. No oversight, no transparency, and no recourse if something goes wrong. Trading on a CFTC-regulated platform gives me confidence that there are rules in place to protect participants. If the CFTC clamps down too hard or bans these markets, people like me won't just stop trading. We'll get pushed to those shady offshore sites where there's no accountability. I think the CFTC should focus on keeping activity within regulated spaces, not driving it underground. This ties directly to questions 7 and 8 in your ANPR about balancing innovation and consumer protection. Regulation, not prohibition, is the answer.
I also want to address the concern about insider trading or informed traders, which I see in questions 29 and 30. I believe informed trading actually improves price discovery. When people with deep knowledge trade, the market prices get sharper and more accurate. That benefits everyone, not just the traders. It's information I can't get from polls or news outlets. Of course, manipulation and insider trading by bad actors are real risks, but those are already illegal under existing laws. The CFTC has the tools to enforce against that without banning entire markets. Punishing everyone for the actions of a few doesn't make sense.
I'm asking the CFTC to support proportionate regulation of prediction markets. Don't ban or over-restrict them. Keep platforms like Kalshi accessible to regular traders like me, and focus on targeted rules to address specific risks. These markets are a valuable tool for hedging, forecasting, and democratizing information, and with the right oversight, they can continue to grow safely.
Thank you for considering my input.
Sincerely,
Riley Collett
