Comment Text:
Dear Chairman and Commissioners,
My name is Sai Mallikarjuna Rao Bollam, and I'm a software engineer based in Utah. I'm writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I'm relatively new to prediction markets, but I strongly support their existence under fair and well-thought-out regulation. As someone working in tech, I see the value of innovation and open access to new tools, and I believe these markets can provide unique benefits if handled correctly.
I believe every individual should have the freedom to participate in legal, regulated markets. Prediction markets aren't just for big institutions; they give people like me a chance to engage with real-world events in a meaningful way. From my perspective, platforms like Kalshi, which operate under CFTC oversight as a designated contract market, are a much safer option than unregulated offshore platforms. If the CFTC over-restricts or bans these markets, I worry that activity will simply move to less safe, less transparent venues outside U.S. jurisdiction. That doesn't protect anyone; it just pushes the problem out of sight.
I also think the United States should be a leader in financial innovation. In my field, I've seen how quickly technology can advance when given the right support. If we stifle prediction markets with heavy-handed rules, we risk ceding ground to other countries that are more willing to embrace new ideas. We should be setting the standard, not falling behind.
On the topic of regulation, I urge the CFTC to focus on proportionate, targeted rules rather than broad categorical bans. I understand there are risks like manipulation or insider trading, but those can be addressed with specific measures. Shutting down entire categories of contracts, as discussed in questions 15 through 22 of the ANPR regarding listed activities, feels like using a sledgehammer to crack a walnut. Similarly, in response to questions 7 through 14 on public interest, I believe the balance between innovation and consumer protection can be struck without resorting to outright prohibitions. The CFTC already has tools to tackle bad actors; let's use those instead of punishing everyone.
As a tech professional, I appreciate systems that are built to solve specific problems without breaking everything else in the process. I hope the CFTC takes a similar approach here. Please support the growth of prediction markets with regulations that address real risks while allowing ordinary citizens like me to participate in a safe, legal environment.
Thank you for considering my input.
Sincerely,
Sai Mallikarjuna Rao Bollam
