Comment Text:
Dear Chairman and Commissioners,
My name is Otis Anderson, and I'm a trader and investor based in New York. I've been actively trading on prediction markets like Kalshi for a while now, and I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I want to share my perspective as someone who participates in these markets regularly. While I have serious concerns about the personal toll this can take, I believe well-regulated prediction markets have value and shouldn't be banned outright.
Ill be honest, trading on prediction markets can feel like a casino at times. I've struggled with the pull of it, and I worry it's taken a toll on my life and maybe others' too. It's easy to get caught up in the rush, and I sometimes wish there were stronger guardrails to protect people like me from ourselves. But shutting these markets down entirely isn't the answer. I've also seen firsthand how they provide unique information you can't get anywhere else. The prices on platforms like Kalshi often predict outcomes better than polls or pundits, and that benefits everyone, not just traders. I think informed trading actually improves price discovery, helping markets reflect reality more accurately, which is good for participants and even people who just watch the data.
My biggest concern is consumer protection, and I believe regulation is the way to handle it. If the CFTC bans or overly restricts these markets, people won't stop trading. They'll just move to offshore platforms with no oversight, and that'll be worse for everyone. I've traded on regulated markets, and the transparency and rules give me some confidence, even if I struggle personally. I'd rather see the CFTC focus on strong, clear regulations to protect consumers while keeping these markets accessible in the US.
I'm particularly interested in your questions on public interest, like Question 7 about balancing innovation and consumer protection. I think you can do both by setting rules that prevent manipulation and ensure fair access without killing the market. Also, regarding Question 29 on inside information, I believe informed traders often make prices more accurate, as long as insider trading laws are enforced. The CFTC already has tools to tackle bad actors, so use those instead of broad bans.
Im asking you to support proportionate regulation of prediction markets. Don't shut them down or over-restrict them. Focus on protecting consumers through clear rules and keeping these markets in the US where they can be watched. I know I need help with my own habits, but punishing everyone for a few bad actors or personal struggles isn't fair.
Sincerely,
Otis Anderson
