Comment Text:
Dear Chairman and Commissioners,
My name is Alex Sharma, and I'm a trader and investor based in New York. I've been in the markets for years, and Im writing to express my strong support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). I believe these markets serve a vital purpose, and I hope the CFTC will craft rules that allow them to thrive without over-restricting access or innovation.
I use prediction markets regularly to hedge risks that affect my personal finances and investment strategies. For example, Ive traded event contracts on platforms like Kalshi to manage uncertainty around election outcomes that could impact tax policies or regulatory changes affecting my portfolio. This isn't a game for me; it's a practical tool. Just like I hedge against commodity price swings or interest rate changes in other markets, prediction markets let me protect myself against real-world events that hit my bottom line. I believe this kind of risk management is a legitimate economic purpose, not gambling, and I hope the CFTC recognizes that in response to questions 15-22 about defining gaming versus valid market activity.
I'm also a big believer in keeping these markets regulated here in the US. I've seen what unregulated offshore platforms look like, and theyre a mess, with no oversight or consumer protections. A regulated platform like Kalshi, operating under CFTC rules, is far safer for someone like me. Banning or overly restricting prediction markets would just push people like me to those sketchy venues. I think the CFTC should focus on strong, targeted regulation instead of broad bans, as discussed in questions 7-14 on balancing innovation and consumer protection.
Another point I want to stress is US competitiveness. We should be leading the way in financial innovation, not handing that advantage to other countries. Prediction markets are a cutting-edge tool for price discovery and risk management, and if we over-regulate or shut them down, were just ceding ground to foreign markets. Id urge the CFTC to consider this under questions 33-40 about costs and benefits.
I get that there are concerns about manipulation or insider trading, and those are real issues. But the CFTC already has tools to tackle that, just like in other derivatives markets. Let's not punish everyone by restricting access to these markets because of a few bad actors. Im all for proportionate rules that address specific risks without throwing out the baby with the bathwater.
In short, I ask the CFTC to support regulated prediction markets with fair, targeted rules. Let individuals and businesses like me continue to use these tools for hedging and informed decision-making. Dont let heavy-handed restrictions or categorical bans limit our freedom to participate in legal, overseen markets.
Thank you for considering my views.
Sincerely,
Alex Sharma
