Comment on CFTC-2026-0331, CFTC-2026-0331-0001, Jake, Kali

Dear Chairman and Commissioners, My name is Jake Kali, and I'm a student from South Carolina with a strong interest in economics and public policy. I'm writing to express my support for well-regulated prediction markets in response to 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 provide, and I believe the CFTC should craft rules that encourage their growth while addressing legitimate concerns. Prediction markets aren't just a niche hobby for me; they offer insights I can't find anywhere else. I've noticed how often their forecasts beat out polls or pundits when it comes to elections or economic events. As a student, I rely on accurate information to understand the world and make sense of complex issues for my studies. These markets aggregate real-time data from people who have skin in the game, and that makes their predictions incredibly useful, not just for traders like me but for anyone paying attention, including policymakers and the public. I think this ties directly to your questions on price discovery in Topic Area B, especially Question 7 about balancing innovation with consumer protection. The innovative power of these markets to inform decision-making is a public good worth protecting. I also value the freedom to participate in legal, regulated markets. Platforms like Kalshi, which operate under CFTC oversight, give me confidence that there are rules in place to prevent manipulation and ensure fairness. Compare that to unregulated offshore alternatives, which have no accountability. If the CFTC over-restricts or bans prediction markets, as discussed in Topic Area C, Question 15 about defining legitimate markets, I worry that activity will just move to those unsafe platforms. That doesn't protect consumers like me; it puts us at greater risk. Regulation should keep us in safe, transparent spaces, not push us out. Finally, as someone in academia, I care about research and data transparency. Prediction markets generate valuable data that scholars can study to understand human behavior and forecasting accuracy. I've read studies by economists like Justin Wolfers showing how these markets outperform traditional methods. Banning or limiting them would cut off a vital source of information for academic work, which connects to Question 33 in Topic Area F about the costs and benefits of regulation. The benefit of open data for research should weigh heavily in your decision. I recognize concerns about insider trading or manipulation, but the CFTC already has tools to address those issues. Punishing everyone by restricting these markets isn't the answer. I urge you to support proportionate regulation that allows prediction markets to thrive under clear, fair rules while tackling specific risks with targeted solutions. Please don't ban or over-restrict them. Thank you for considering my perspective. Sincerely, Jake Kali