Comment Text:
Dear Chairman and Commissioners,
My name is Kevin Ramos, and I'm writing from California to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I'm an active trader on platforms like Kalshi, and I strongly support the idea of well-regulated prediction markets. I believe they provide real value to people like me and to society as a whole, and I hope the CFTC will craft rules that encourage innovation while addressing specific risks.
I've been trading on prediction markets for a while now, and I can tell you it's not gambling. When I place a trade on Kalshi, whether it's about an election outcome or an economic indicator like inflation, I'm doing research and using my judgment about real-world events. It's no different from the skills I would use to invest in stocks or other markets. These event contracts serve a genuine economic purpose, like helping me hedge against uncertainty that affects my finances. For example, betting on interest rate decisions helps me think through how they might impact my personal budget or loans. Labeling this as "gaming" feels like a misunderstanding of what these markets do.
I also think the United States has a chance to lead the way in financial innovation with prediction markets. If we over-regulate or ban broad categories of event contracts, we're just pushing this activity to other countries or unregulated offshore platforms. That doesn't protect anyone; it just means we lose control and miss out on the benefits. I'm all for rules that tackle real problems like manipulation or insider trading, but let's focus on those specific issues with targeted regulations. Broad bans punish everyone for the actions of a few bad actors, and that's not fair.
Looking at some of the questions in the ANPR, I want to address a couple from Topic Area B on Public Interest, like Question 7 about balancing innovation and consumer protection. I believe we can have both if the CFTC sets clear, fair rules that let platforms operate while cracking down on bad behavior. Also, in Topic Area D, Question 23 about procedural aspects, I think public interest determinations should happen with a focus on specific risks, not sweeping prohibitions.
In closing, I urge the CFTC to support proportionate regulation of prediction markets. Don't ban or overly restrict them. These markets give regular people like me a way to engage with important events and manage risks in our lives. Let's keep the U.S. at the forefront of this space with smart, focused oversight.
Sincerely,
Kevin Ramos
