Comment Text:
Dear Chairman and Commissioners,
My name is Thara Souphakheth, and I'm an everyday citizen from North Carolina. I'm writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've been actively trading on regulated prediction markets like Kalshi for a while now, and I strongly support the idea of well-regulated markets that allow people like me to participate.
I rely on prediction markets for a few key reasons. First, they give me access to forecasts about elections and other public events that are often more accurate than what I see in polls or hear from pundits. I've noticed how often these markets get it right when others don't, and that information helps me make sense of what's happening. Second, as someone who runs a small side business, I use these markets to hedge against risks that could hit my finances, like policy changes tied to election outcomes. It's a practical tool for me, not just a game. And honestly, I value the freedom to take part in a legal, regulated space where my voice and judgment can count, just like anyone else's.
I want to address a concern I know the CFTC has about risks like manipulation or insider trading. I get why that's a worry, but I think the answer is to enforce the rules we already have, not to ban or over-restrict these markets. Regulated platforms like Kalshi are transparent and accountable, which is a world apart from unregulated offshore sites. If we push people away from safe, overseen markets, they'll just go to riskier places with no protections. That's not the solution.
I'm also looking at some of the specific questions in the ANPR. On Question 7, about balancing innovation and consumer protection under the public interest, I think the U.S. has a chance to lead in financial innovation here. If we over-regulate or shut these markets down, other countries will step in and take the lead. We shouldn't let that happen. On Question 15, about what activities should be allowed, I believe markets tied to public events and economic outcomes serve a real purpose for forecasting and hedging, and they shouldn't be lumped in with gambling.
Prediction markets aren't perfect, but they offer unique value for people like me, whether it's better information or a way to protect against uncertainty. I'm asking the CFTC to support proportionate regulation that keeps these markets safe and accessible, without broad bans or restrictions that punish regular users. Let's keep the focus on smart oversight and enforcing existing laws to handle bad actors.
Thank you for considering my perspective.
Sincerely,
Thara Souphakheth
