Comment Text:
Dear Chairman and Commissioners,
My name is Siddarth Puliyanda, and I'm a trader and investor based in California. I've been actively trading on prediction markets like Kalshi for a while now, 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 provide unique value to individuals like me, businesses, and society as a whole, and I urge the CFTC to adopt a balanced, proportionate approach to regulation rather than imposing broad restrictions or bans.
As a trader, Ive seen firsthand how prediction markets offer information you cant find anywhere else. Their forecasts on elections and public events consistently beat polls and pundits. Ive used these insights to make better financial decisions, and I know others benefit too, whether they trade or just follow the data. Beyond forecasting, these markets let me hedge real risks. For instance, Ive traded contracts tied to economic indicators to offset potential impacts on my investments. This isnt gambling. Its research, analysis, and judgment, much like trading stocks or commodities. Classifying event contracts as gaming ignores their legitimate economic purpose, and I hope the CFTC recognizes this distinction when addressing questions like 15 and 16 on listed activities.
I also value the freedom to participate in legal, regulated markets like Kalshi. Regulation is key for consumer protection, far safer than driving activity to offshore platforms with no oversight. If the U.S. over-restricts or bans these markets, traders like me will face worse options, and the country risks losing its edge in financial innovation. On questions 7 and 8 about public interest, I believe the CFTC should prioritize keeping the U.S. a leader in this space while fostering safe, accessible markets.
Im not blind to concerns like manipulation or insider trading, but the CFTC already has strong tools to tackle these issues, as seen in other derivatives markets. Banning entire categories of contracts to stop a few bad actors punishes everyone else. Instead, as raised in questions 29 and 30 on inside information, I think informed trading often improves price discovery, benefiting all participants. Targeted rules can address specific risks without shutting down the whole system. Plus, regulated markets encourage transparency and data sharing, which aligns with academic research showing prediction markets improve information aggregation for public decision-making.
I urge the CFTC to support proportionate regulation that addresses real risks without stifling innovation or pushing activity offshore. Prediction markets are a powerful tool for forecasting, hedging, and democratizing information. Lets keep them accessible and safe under a smart regulatory framework. Thank you for considering my perspective.
Sincerely,
Siddarth Puliyanda
