Comment Text:
Dear Chairman and Commissioners,
My name is Leo Nishizaki, and I'm a student from Hawaii. I'm writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. As someone who's trying to learn about trading and make a little extra money on the side, I've gotten into prediction markets like Kalshi, and I strongly support having these markets regulated in a fair and balanced way.
I got interested in trading because some of my friends have made decent money in stocks, and I wanted to try something similar as a side hustle. Prediction markets caught my attention because theyre not just about guessing random stuff. They let me research real-world events, like economic data releases or policy changes, and make informed decisions. It feels a lot like investing, not gambling. One of the main reasons I use platforms like Kalshi is to hedge personal financial risks. For example, Ive traded on contracts tied to inflation numbers because Im worried about how rising costs affect my budget as a student. Knowing I can offset some of that uncertainty with a small trade gives me peace of mind.
What I really want to stress is that regulated markets like Kalshi are so much safer than the unregulated offshore platforms out there. Ive looked at some of those other sites, and theyre sketchy. No oversight, no guarantees youll even get your money back. With a CFTC-regulated platform, I feel like theres accountability. If something goes wrong, theres a process to handle it. Banning or over-restricting prediction markets in the US would just push people like me to those unsafe offshore options. Thats not protecting anyone; its making things worse.
I noticed a few questions in the ANPR that relate to my concerns, like Question 7 on balancing innovation with consumer protection and Question 23 on how the public interest is determined. I think the CFTC should focus on rules that keep markets safe and transparent without shutting them down. Regulation should encourage innovation by letting regular people like me participate, while also making sure bad actors cant manipulate things. You already have tools to stop fraud and insider trading. Use those instead of broad bans.
Im just a student trying to learn and manage my finances better. Prediction markets give me a way to do that, and they provide useful information to everyone, not just traders. Please dont over-restrict these markets or push activity to risky offshore platforms. I urge you to support proportionate regulation that protects consumers while allowing prediction markets to grow.
Thank you for considering my input.
Sincerely,
Leo Nishizaki
