Comment Text:
Dear Chairman and Commissioners,
My name is Zach Berg, and I'm just an everyday citizen from Hawaii writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. Ive been following this issue because I actively trade on prediction markets like Kalshi, and I believe these markets provide real value to people like me. Im not a financial expert or a lawyer, just someone who sees the benefit of participating in a legal, regulated space for event contracts.
I strongly support well-regulated prediction markets because they give regular folks like me a chance to engage with events that impact our lives. Whether it's an election outcome that could affect my taxes or a policy change that might hit my cost of living here in Hawaii, trading on these markets lets me hedge against uncertainty. Its not gambling, no matter what some might say. It takes research and judgment, just like investing in stocks. I spend time reading up on issues, looking at data, and making informed decisions. To me, thats a legitimate economic activity, not a game of chance. Id urge the CFTC to recognize this distinction when considering questions like those in Topic Area C, specifically Question 15, about defining gaming versus legitimate markets.
Another big reason Im writing is to stress how important it is to keep these markets regulated here in the U.S. Platforms like Kalshi, which operate under CFTC oversight, are transparent and safe. I trust them far more than I would some offshore site with no accountability. If the CFTC over-restricts or bans certain event contracts, I worry that people will just turn to unregulated platforms outside the U.S. Thats not safer for anyone. I hope the CFTC considers this balance of innovation and protection, as raised in Topic Area B, particularly Question 7, about weighing consumer protection against the benefits of new markets.
I know there are concerns about manipulation or insider trading, and I get that those are real issues. But the CFTC already has tools to tackle bad actors. Punishing everyone by shutting down or over-regulating prediction markets doesnt seem fair. Instead, focus on enforcing the rules already in place. Im just asking for the freedom to keep participating in a legal, regulated space that provides real value to me and others.
Thank you for taking the time to read my comment. I respectfully ask that the CFTC support proportionate regulation of prediction markets and avoid broad bans or restrictions that could push activity into less safe, unregulated spaces.
Sincerely,
Zach Berg
