Comment Text:
Dear Chairman and Commissioners,
My name is Sahil Patel, and I'm a business owner from the United States. Im 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). Ive always been fascinated by markets, and I believe these platforms are incredibly helpful for investors, traders, and even the general public. Ive used prediction markets a few times myself, and Ive seen firsthand how they provide valuable insights that you just cant get from polls or pundits.
As a business owner, I rely on accurate information to make decisions, whether its about economic trends or public events like elections that could impact my operations. Prediction markets have consistently proven to be more accurate than traditional forecasting methods. That kind of data isnt just useful for traders; it helps everyone, from small business owners like me to policymakers. I also value the freedom to participate in legal, regulated markets. Platforms like Kalshi, operating under CFTC oversight, are far safer than unregulated offshore alternatives. If we over-restrict or ban these markets, activity will just move to less transparent, riskier venues. Thats not the outcome we want.
I also see real hedging value here. For instance, being able to trade on election outcomes or regulatory changes could help me manage risks tied to policy shifts that affect my business. This isnt gambling; its a legitimate economic tool, and classifying event contracts as gaming misses their purpose. On a broader level, I worry that overly restrictive rules could hurt U.S. competitiveness in financial innovation. We should be leading in this space, not ceding ground to other countries. Academic research backs this up, showing how prediction markets improve price discovery and data transparency. Informed trading, far from being a problem, actually makes prices more accurate and benefits all participants.
Id like to address a few specific questions from the ANPR. On Questions 7-14 under Public Interest, I believe the CFTC should prioritize balancing innovation with consumer protection by using existing tools to prevent manipulation and insider trading, rather than imposing broad bans. The CFTC already has robust authority to tackle bad actors, as noted in Questions 1-6 on Core Principles. And regarding Questions 15-22 on Listed Activities, event contracts serve real economic purposes like hedging and shouldnt be lumped in with gaming.
I urge the Commission to adopt targeted, proportionate regulations for prediction markets. Dont ban or over-restrict them. Lets keep these markets safe, transparent, and accessible to everyday people like me while ensuring the U.S. remains a leader in financial innovation.
Thank you for considering my input.
Sincerely,
Sahil Patel
