Comment Text:
Dear Chairman and Commissioners,
My name is Jonathan Zamora, and I'm a robotics engineering student from California. I'm writing to express my strong support for the proportionate regulation of prediction markets as outlined in the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). As someone who actively trades on platforms like Kalshi, I've seen firsthand the value these markets bring, not just to me but to society as a whole, and I believe the CFTC should foster their growth with targeted, fair rules rather than restrictive bans.
This year, I started coding my own trading algorithms for prediction markets. As a student, I'm used to paying for education and often going into debt for it, but trading on Kalshi has been different. I've learned so much about markets, events, and data analysis while actually making money. It's been exciting to apply my technical background as a coder to something so practical. I believe that if I can build algorithms that often predict outcomes correctly, so can many others on platforms like Kalshi. Together, we contribute to better insights across a wide range of topics, from elections to economic indicators. These markets aren't just a game; they produce forecasts that are often more accurate than polls or pundits, and that benefits everyone, not just traders.
I also see real economic purpose in prediction markets. They aren't gambling. They take research, analysis, and judgment, much like trading stocks. For someone like me with a smaller budget, they offer an accessible way to engage in research-based trading and even hedge personal financial risks, like election outcomes that could affect my future taxes or job prospects. Plus, the information these markets generate helps with public decision-making and price discovery. I truly believe the U.S. should lead in this kind of financial innovation rather than let other countries take the reins.
That said, I understand concerns about manipulation or insider trading. But the CFTC already has strong tools to address these issues in other derivatives markets, and they can be applied here too. Banning or over-restricting prediction markets doesn't solve the problem; it just pushes activity to unregulated offshore platforms where there's less oversight and more risk to consumers. Regulated markets like Kalshi are far safer, and I'd urge the CFTC to focus on proportionate rules that target specific risks instead of broad categorical prohibitions. Regarding questions 7-14 on public interest and 29-32 on inside information in the ANPR, I believe informed trading actually improves price discovery and benefits all participants, as long as existing laws against insider trading are enforced.
Prediction markets are exciting and accessible in a way few other financial tools are for someone like me. They reward hard work and research with both personal gains and societal value through better forecasts. I respectfully ask the CFTC to support their growth with balanced regulation that protects consumers while preserving innovation and participation.
Sincerely,
Jonathan Zamora
