Comment Text:
Dear Chairman and Commissioners,
My name is Subbu Dantu, and I'm a software engineer based in Arizona. I'm writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I actively trade on platforms like Kalshi, and I strongly support the idea of well-regulated prediction markets. I believe they offer unique value to people like me and to society as a whole, and I hope the CFTC will create rules that allow them to thrive under proper oversight.
As someone working in tech, I value data and accurate information. Prediction markets have consistently provided forecasts on elections and public events that beat traditional polls or pundit opinions. I've seen this firsthand using Kalshi to track election outcomes. The aggregated wisdom of many traders often cuts through the noise of biased reporting or flawed surveys. This isn't just helpful for traders; it gives everyone better information to make decisions, whether you're a voter, a business owner, or even a policymaker. I think this ties directly to your questions on public interest, like Question 7, about balancing innovation with consumer protection. The innovation here is real, and it benefits the public.
I also care deeply about the freedom to participate in legal, regulated markets. Platforms like Kalshi, under CFTC oversight, are transparent and safe. I've felt confident trading there knowing there are rules in place. But if prediction markets are banned or over-restricted, that activity won't disappear. It will just move to unregulated offshore platforms with no protections. I'd much rather see the CFTC focus on smart regulation than push people like me into riskier spaces. This connects to Question 13 on risk management. Regulated markets manage risk far better than the alternative.
On a broader level, I believe the US should be a leader in financial innovation. In tech, we see how fast the world moves. If we stifle prediction markets here, other countries will step in and take the lead. We can't afford to fall behind on something with so much potential. This speaks to questions like 33 and 34 on classification and costs. Let's not burden these markets with excessive rules that kill growth.
I understand concerns about manipulation or insider trading, but the CFTC already has tools to address those issues. Banning or over-restricting entire markets punishes honest participants like me instead of targeting bad actors. Let's focus on enforcement of existing laws rather than broad prohibitions.
I'm asking the CFTC to support proportionate regulation of prediction markets. Keep platforms like Kalshi accessible to regular people under clear, fair rules. Don't let overregulation push this valuable tool offshore or out of reach. Thank you for considering my input.
Sincerely,
Subbu Dantu
