Comment Text:
Dear Chairman and Commissioners,
My name is Randy Hernandez, and I'm a student from Colorado. I'm writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on regulated prediction markets like Kalshi, and I strongly support the CFTC crafting fair, proportionate regulations for these markets rather than imposing harsh restrictions or bans.
As a student, Ive found prediction markets to be an incredible tool for learning about economics, politics, and real-world events. Trading on platforms like Kalshi isnt just a hobby, its a way to engage with issues that matter to me. Ive put time into researching election outcomes and economic indicators, and Ive used that knowledge to make trades. This isnt gambling, its a process that demands analysis and critical thinking, much like investing in stocks. I believe event contracts serve a real economic purpose, whether its for price discovery or helping people hedge against uncertainties. Labeling them as "gaming" feels like a misunderstanding of their value, and I urge the CFTC to recognize this distinction when addressing questions 15 to 22 on listed activities.
I also want to stress how important it is to keep these markets regulated and accessible here in the U.S. Platforms like Kalshi operate under CFTC oversight, which gives me confidence that there are rules in place to prevent manipulation and ensure fairness. If the CFTC over-restricts or bans prediction markets, I worry that activity will just shift to unregulated offshore platforms where theres no protection for traders like me. Thats a worse outcome for everyone. I hope the CFTC considers this when looking at questions 7 to 14 on balancing innovation with consumer protection. Regulated markets are safer, and pushing people offshore by over-regulating isnt the answer.
Im not saying there arent risks. I get that insider trading or manipulation could be issues, but the CFTC already has tools to address those problems. Focus on enforcing existing laws rather than limiting access for regular people like me who want to participate in legal, transparent markets. I believe in my freedom to engage in these markets as long as theyre properly overseen.
Thank you for taking the time to read my thoughts. I ask that the CFTC support well-regulated prediction markets and avoid broad bans or overly restrictive rules that could harm innovation and push activity to less safe venues. Lets keep these markets accessible and fair for everyone.
Sincerely,
Randy Hernandez
