Comment Text:
Dear Chairman and Commissioners,
My name is Cole Hodys, and I'm a medical student from New York. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I've dabbled in prediction markets a few times, and I want to share why I support their continued operation under fair, well-thought-out regulation.
Coming from the sports betting world, I see prediction markets as a way to level the playing field. They increase competition and give regular people like me a chance to participate in something that isn't just controlled by the big sportsbooks. Without these markets, it feels like a monopoly where only the major players get to benefit.
I strongly believe that regulated markets, like Kalshi on a CFTC-registered platform, are far safer than the unregulated offshore alternatives. If we over-restrict or ban these markets, people won't stop participating; they'll just move to less safe venues where theres no oversight.
That said, I'm not blind to the risks. Insider trading, especially on current events or politics, worries me. I've seen how known outcomes could be exploited, and I believe there needs to be tighter regulation to prevent that. For instance, markets like which words will be said have a known outcome, and participating in these markets with insider knowledge should be considered insider trading. But the answer isn't to shut down prediction markets altogether. Instead, I urge you to focus on targeted rules that address specific problems like insider trading. The CFTC already has tools to tackle manipulation and fraud in other markets; adapt those here. Im particularly interested in your questions 29 through 32 on inside information, and I hope youll consider how to balance the benefits of informed trading with strict enforcement against abuse.
Prediction markets give people like me the freedom to engage in legal, regulated spaces, and they shouldn't be overly restricted. I'm asking you to support proportionate regulation that keeps these markets accessible while addressing real concerns with precision. Let's not throw out a valuable tool just because it needs some guardrails.
Thank you for considering my input.
Sincerely,
Cole Hodys
