Comment Text:
Dear Chairman and Commissioners,
My name is Je Led, and I'm a trader and investor based in 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). I've been actively trading on platforms like Kalshi for a while now, and I believe these markets provide real value to individuals like me, as well as to businesses and the broader economy.
I rely on prediction markets to help me manage risks that directly impact my financial planning. For instance, I trade contracts tied to economic indicators like inflation data or Federal Reserve decisions because they affect my investment portfolio and personal budget. Just last year, I used a contract on Kalshi to hedge against potential interest rate hikes that could have raised the cost of a loan I was considering. This isn't gambling; it's a practical tool for managing uncertainty, much like how I use other financial instruments to protect my investments. These markets give me access to unique information through their pricing, often more accurate than what I can find in news or polls, and that helps me make better decisions.
I also believe that the freedom to participate in legal, regulated markets like these is critical. Shutting down or over-restricting prediction markets would push activity to unregulated offshore platforms, which are far riskier for everyone involved. As a trader, I want to operate in a safe, transparent environment under the CFTC's oversight, not in some shadowy corner of the internet. I know there are concerns about insider trading or manipulation, and I get that. But those issues are already illegal under existing laws, and the CFTC has the authority to enforce them. Banning or overly restricting these markets to stop a few bad actors feels like punishing the rest of us who are using them responsibly.
Id like to address a couple of specific questions from the ANPR. On Question 7, regarding balancing innovation and consumer protection, I think the CFTC should focus on targeted rules to address specific risks rather than broad prohibitions. And on Question 15, about defining what constitutes legitimate markets, I believe event contracts tied to economic or political outcomes serve a clear hedging purpose and shouldn't be lumped in with gaming.
In closing, I urge the CFTC to support the growth of well-regulated prediction markets. Theyre a valuable tool for individuals and businesses to hedge real risks, and with the right oversight, they can thrive without compromising safety or fairness. Thank you for considering my perspective.
Sincerely,
Je Led
