Comment Text:
Dear Chairman and Commissioners,
My name is Anish Dighe, and I'm a software engineer from New Jersey. Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. As someone who actively trades on platforms like Kalshi and Polymarket, I strongly support the development of well-regulated prediction markets in the United States. I believe they offer unique value to individuals like me, as well as to society at large, and I urge the CFTC to craft rules that encourage innovation while addressing real risks with targeted measures.
I got into prediction markets a couple of years ago because, as a tech professional, Im always looking for better data to understand trends, whether its an election outcome or an economic indicator like a Fed rate decision. The prices on these markets often cut through the noise of pundits and polls, giving me insights I cant find anywhere else. This isnt just helpful for my trades; its valuable for anyone trying to make sense of the world. Beyond that, trading on these platforms feels like a way to participate in public discourse with real skin in the game. Its not gambling, its a skill. I research, analyze, and make judgments based on real-world events, much like I would with stocks or other investments. Classifying event contracts as gaming undercuts their legitimate economic purpose, like price discovery and hedging, which I believe the CFTC should recognize in response to Questions 15-22 on listed activities.
Im also concerned about what happens if the CFTC over-restricts or bans these markets. Ive traded on offshore platforms like Polymarket, and while theyre accessible, they lack the oversight of a regulated venue like Kalshi, which operates under CFTC rules. If the U.S. clamps down, people like me will just move to less safe, unregulated spaces. Thats worse for consumer protection, not better. On Questions 7-14 regarding public interest, Id argue that regulated markets balance innovation and safety far better than pushing activity offshore.
I know there are concerns about manipulation and insider trading, but the CFTC already has strong tools to tackle those issues, as seen in other derivatives markets. Banning entire categories of contracts to stop a few bad actors seems like overkill when targeted enforcement could address specific risks. Plus, informed trading often improves price accuracy, benefiting everyone, as touched on in Questions 29-32 about inside information. And honestly, the U.S. should be leading in financial innovation, not handing that edge to other countries by stifling a growing industry.
I urge the CFTC to adopt proportionate regulations that protect consumers without crushing these markets. Focus on specific risks with tailored rules, not broad prohibitions. Prediction markets have real value, and with the right oversight, they can thrive here in the U.S.
Thank you for considering my input.
Sincerely,
Anish Dighe
