Comment Text:
Dear Chairman and Commissioners,
My name is Vala Zeinali, and I'm a hedge fund analyst based in Connecticut. Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I strongly support the proportionate regulation of prediction markets and believe they provide immense value to individuals like me, as well as to the broader economy. I use platforms like Kalshi to hedge risks in my portfolio and to price scenarios that directly inform my trading decisions on Wall Street. These markets aren't just tools for speculation; theyre critical for risk management and better decision-making.
As a finance professional, I rely on prediction markets to gain insights that polls and pundits simply can't match. I've seen firsthand how these markets often forecast outcomes more accurately, whether it's an election result or an economic indicator like a CPI print. This isn't gambling. Its a legitimate way to aggregate information and uncover truths that benefit not just traders like me, but also the public and even policymakers who need reliable data. Classifying event contracts as "gaming" ignores their real economic purpose. Theyre as much an investment tool as stocks or futures, requiring research and judgment about real-world events.
I also use Kalshi to hedge risks tied to my portfolio. For instance, I trade contracts on political or regulatory outcomes that could impact my positions, helping me manage uncertainty in ways traditional markets dont allow. This hedging utility is a lifeline for individuals and businesses alike, and its why I believe the U.S. should lead in financial innovation rather than cede ground to other countries. Regulated platforms like Kalshi are far safer than unregulated offshore alternatives. Pushing activity overseas by over-restricting these markets would only harm participants and reduce oversight.
Regarding some of the specific questions in the ANPR, Id like to address Question 11 under Public Interest. Prediction markets absolutely serve the public good through price discovery and risk management, as Ive experienced directly in my work. On Question 15 under Listed Activities, I urge the CFTC not to label these contracts as gaming. They serve a clear economic function, distinct from betting. And on Question 29 under Inside Information, I believe informed trading actually improves price discovery. It makes the markets predictions sharper, benefiting everyone involved, as long as existing laws against insider trading are enforced.
I understand concerns about manipulation or misuse, but the CFTC already has tools to address those risks. Banning or overly restricting prediction markets punishes legitimate users like me without solving the root issues. I ask that you support proportionate regulation that fosters innovation while protecting participants. Let's keep the U.S. at the forefront of financial markets and ensure platforms like Kalshi can continue providing these valuable tools under a clear, fair framework.
Thank you for considering my input.
Sincerely,
Vala Zeinali
