Comment Text:
Dear Chairman and Commissioners,
My name is Jonatham Brutto, and I'm a small business owner from Texas. I run a company that deals with commodities and operational expenses, and Im writing to share my support for well-regulated prediction markets in response to your Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I've been actively trading on platforms like Kalshi, and I can honestly say its been a game-changer for my business.
Prediction markets give me information I cant find anywhere else. Ive seen firsthand how their forecasts are often more accurate than polls or pundits on TV. Thats not just helpful for me when Im making business decisions; its valuable for everyone, from policymakers to regular folks trying to understand whats coming next. On top of that, I use Kalshi to hedge real risks. Whether its commodity price swings or unexpected costs that could hit my bottom line, being able to trade on event contracts lets me protect my business in ways I couldnt before. This isnt gambling. Its research, analysis, and judgment, just like any other investment I make.
I also want to stress that regulated markets like Kalshi are a much safer bet than unregulated offshore platforms. If you over-restrict or ban these markets, people like me will get pushed to less secure options. Thats not good for anyone. The US has a chance to lead in financial innovation here, and I think we should take it. Dont let other countries outpace us by shutting down something that works when its done right. Ive read about academic research backing prediction markets too, showing how they aggregate data efficiently. That transparency matters to me as a business owner who relies on solid info.
Im aware of the concerns, like manipulation or insider trading, and I get why the CFTC is asking about them in questions 1 through 6 and 29 through 32. But those issues are already illegal, and the CFTC has tools to tackle them. Banning or over-regulating prediction markets punishes honest users like me instead of targeting the bad actors. Id urge you to focus on proportionate rules that address specific risks without broad categorical bans, as discussed in questions 7 through 14 about balancing innovation and consumer protection.
Prediction markets are a tool I rely on, and they can benefit society if regulated thoughtfully. Please support their growth with targeted, fair regulations that keep them safe and accessible for businesses and individuals alike. Thank you for considering my input.
Sincerely,
Jonatham Brutto
