Comment Text:
Dear Chairman and Commissioners,
My name is Aharon Diveroli, and I'm a business owner from Florida. I've been actively trading on prediction markets like Kalshi for some time now, and Im writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. I support the freedom to participate in legal, regulated markets, but I have serious concerns about how platforms like Kalshi operate. I believe the CFTC needs to step in with stronger oversight to protect people like me, the little guys, from manipulation and unfair practices.
As a small business owner, I value the idea of prediction markets. They can offer unique insights and help me hedge risks tied to political or economic events that impact my business. I also think the U.S. should be a leader in financial innovation. We shouldn't let other countries take the lead on this while we drag our feet. But my experience with Kalshi has been frustrating and, honestly, upsetting. I've seen resolutions to markets that seem arbitrary and illogical, outcomes that make no sense based on the data or rules. It often feels like the platform is rigged, benefiting insiders or their friends while regular traders like me lose out. Im convinced theres more manipulation on Kalshi than in the stock market, and thats saying something.
I dont want to see prediction markets banned. I just want them to be fair. Thats why Im asking the CFTC to heavily regulate platforms like Kalshi. Specifically, Im concerned about insider trading and market manipulation, which seem rampant. In response to your questions 29 through 32 on inside information, Id say that informed traders might help with price discovery, but only if the playing field is level. Right now, its not. Kalshi doesnt seem to have the controls in place to stop insiders from profiting off nonpublic information, and thats a big problem. On questions 1 through 6 about core principles, I think the CFTC needs to enforce strict rules to prevent manipulation and ensure dispute resolutions are transparent and logical, not arbitrary like Ive experienced.
Im not against prediction markets as a concept. I just want to participate in a system that isnt stacked against me. Shutting down Kalshi entirely might be too far, but without serious oversight, theyre going to keep taking advantage of regular traders. Please use your authority to create strong, fair regulations that stop insider trading and manipulated outcomes. Protect the little guys like me while still allowing the U.S. to lead in this innovative space.
Thank you for considering my comments.
Sincerely,
Aharon Diveroli
