Comment Text:
Dear Chairman and Commissioners,
My name is Abhinav Kadam, and I'm a student from New Jersey with a strong interest in economics and data analysis. I'm writing to express my support for the proportionate regulation of prediction markets as outlined in the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). As someone who actively trades on platforms like Kalshi, Ive seen firsthand how these markets provide unique insights and serve real economic purposes, and I believe the CFTC has an opportunity to foster innovation while protecting consumers.
Prediction markets aren't just a hobby for me; theyre a tool for understanding the world. As a student, I rely on the data and transparency these platforms offer to study trends and test theories. The prices on markets like Kalshi often cut through the noise of pundits and polls, giving me better information about events that shape public policy and economic outcomes. This aligns with the CFTCs questions on price discovery in the Public Interest section (Questions 7-14). I believe these markets aggregate information in a way that benefits not just traders but anyone looking to make informed decisions, from students like me to policymakers.
I also want to stress that event contracts are not gambling. They require research, analysis, and judgment, much like traditional investments. Ive used these markets to think through risks tied to economic indicators or political events, and thats a legitimate economic activity, not a game of chance. Addressing Questions 15-22 on listed activities, I urge the CFTC to recognize this distinction and avoid categorizing these contracts as gaming.
What worries me most is the risk of over-regulation or outright bans. If the U.S. restricts prediction markets too heavily, activity will just move to unregulated offshore platforms where theres no oversight. I trade on Kalshi because its regulated and transparent, and I feel safer there. Pushing users to less secure venues would harm consumers and cede leadership in financial innovation to other countries. The U.S. should be at the forefront of this space, not playing catch-up. This ties directly to the CFTCs questions on balancing innovation and consumer protection (Questions 7-14), and I believe regulation, not restriction, is the answer.
Im not blind to the risks of manipulation or insider trading, but the CFTC already has tools to tackle those issues. Use them. Dont punish everyone by shutting down a valuable market. I strongly encourage the Commission to craft rules that support well-regulated prediction markets while addressing specific concerns with targeted measures. Lets keep these platforms safe, transparent, and accessible to everyday people like me who value the information they provide.
Thank you for considering my perspective.
Sincerely,
Abhinav Kadam
