Comment Text:
Dear Chairman and Commissioners,
My name is Siddhartha Shankar, and Im a software engineer based in Washington state. Im 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 works in tech and enjoys sports, Ive recently started exploring platforms like Kalshi, and Ive found that participating in these markets adds a layer of excitement to watching games and following public events. Im new to this space, but I believe prediction markets have real value, and I want to share why I think the CFTC should regulate them thoughtfully rather than restrict access.
For me, prediction markets arent just about placing bets. They provide unique insights you cant get from polls or news outlets. Ive seen how platforms like Kalshi aggregate opinions into forecasts that often seem more accurate, especially for elections or other big public events. As a tech professional, I appreciate how these systems crowdsource data and turn it into something meaningful. Beyond that, I value the freedom to participate in a legal, regulated market. Im not a big investor or a Wall Street type, just a regular person who enjoys engaging with these platforms. Shutting down or over-restricting access would feel like cutting off an opportunity for everyday folks like me to have a stake in understanding and predicting the world around us.
I understand there are concerns about manipulation or insider trading, and those are valid. But the CFTC already has tools to tackle those issues. Laws against insider trading apply to federal employees and others with nonpublic information, and your existing authority to stop market manipulation can be used here too. Banning or heavily restricting prediction markets to stop a few bad actors would punish the majority of us who use them responsibly. Plus, I strongly believe regulated markets like Kalshi are far safer than unregulated offshore platforms. If access is cut off here, people will just turn to less secure, less transparent options outside the U.S. Thats not a solution, its a bigger problem.
Id like to address a couple of specific questions from the ANPR. On Question 7, about balancing innovation and consumer protection, I think regulation should focus on transparency and oversight, not outright bans. And on Question 15, regarding defining legitimate markets, I believe platforms offering contracts on elections or sports outcomes serve a real purpose in forecasting and engagement, distinct from gambling. I hope the CFTC will craft rules that protect users while allowing these markets to grow.
Prediction markets are a tool for insight and participation. I urge you to support proportionate regulation that keeps them accessible to people like me, under a framework that ensures safety and fairness. Thank you for considering my perspective.
Sincerely,
Siddhartha Shankar
