Comment Text:
Dear Chairman and Commissioners,
My name is Ajay Desai, and I'm a software engineer based in Pennsylvania. Im writing to express my support for well-regulated prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). As someone who actively trades on platforms like Kalshi, Ive seen firsthand the value these markets provide, and I believe the CFTC should craft proportionate regulations rather than imposing bans or overly restrictive rules.
I work in tech, where data and accurate forecasting are everything. Prediction markets have consistently outperformed polls and pundits when it comes to predicting election outcomes and other public events. Ive relied on these platforms to get a clearer picture of whats likely to happen, whether its a presidential race or a policy change that could impact my industry. This isnt just useful for me; better information helps everyone, from individual citizens to policymakers. Its a public good.
Beyond forecasting, these markets let me hedge real financial risks. As a freelancer at times, Ive used event contracts to offset uncertainties tied to economic policies or regulatory shifts that could affect my contracts and income. This isnt gambling. Its a practical tool, much like any other investment or derivative used to manage risk. Classifying these contracts as gaming, as discussed in Questions 15-22 of the ANPR, misses their legitimate economic purpose. Theyre about price discovery and risk management, not betting for fun.
I also worry about the CFTC over-restricting or banning these markets, as explored in Questions 7-14 on public interest. If that happens, activity will just move offshore to unregulated platforms, which are far riskier for consumers like me. The U.S. should be leading in financial innovation, not ceding ground to other countries. Regulated markets like Kalshi, under CFTC oversight, are the safer, smarter option. Plus, the CFTC already has strong tools to tackle manipulation and insider trading, as noted in Questions 29-32. Use those existing powers instead of punishing everyone with broad restrictions.
I understand concerns about market integrity, but banning or over-regulating prediction markets isnt the answer. Its like shutting down the stock market over a few bad actors. Focus on targeted enforcement and clear rules. I urge the CFTC to support innovation and access while addressing specific risks with precision.
Thank you for considering my input. I strongly encourage the Commission to regulate prediction markets proportionately and avoid bans or categorical restrictions that would harm their potential.
Sincerely,
Ajay Desai
