Comment Text:
Dear Chairman and Commissioners,
My name is Pranav Kaushik Balachandar, and I'm a software engineer based in Houston, Texas. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. As someone who actively trades on prediction markets, I want to share my perspective on why I support the freedom to participate in legal, regulated markets, while also raising serious concerns about specific platforms like Kalshi that have harmed me and others through unethical practices.
I believe prediction markets have real value. As an engineer, I appreciate how they aggregate information and produce insights you can't find in polls or news. Informed trading, where people like me research and analyze before placing bets, improves price discovery. That benefits everyone, not just traders. It makes markets more accurate and gives regular folks a chance to participate in something that big institutions often dominate. I see this as a democratizing force, not gambling. It takes skill and judgment, much like stock trading. Banning or over-restricting these markets would just push activity to unregulated, offshore platforms, which is far riskier.
That said, my personal experience with Kalshi has been terrible. I've been conned by them in the past because they failed to honor their own rulebook conditions. When disputes arise, their team is nearly impossible to reach, and they don't settle issues credibly. In cases where a market goes haywire, Kalshi seems to swindle bettors like me rather than take responsibility. I believe they exploit people's vulnerabilities and lack any ethical backbone. I was severely impacted by their practices, and I would fully support and even assist the CFTC or any federal or state agency in investigating Kalshi's business conduct. They shouldn't be allowed to operate unchecked.
Regarding some of the specific questions in the ANPR, I want to address Question 29 on inside information. I think informed trading helps price discovery, as I mentioned, but there need to be strict guardrails. The CFTC already has tools to tackle insider trading and manipulation in other markets, and those should be applied here too. Shutting down entire markets to stop a few bad actors punishes honest participants like me. Instead, focus on enforcing existing laws and targeting unethical operators like Kalshi.
I urge the CFTC to support proportionate regulation of prediction markets. Don't ban or overly restrict them. Create a framework that protects consumers while allowing innovation and participation. And please, take a hard look at platforms like Kalshi that harm users through shady practices. I'm happy to provide more details on my experiences if it helps your investigation.
Thank you for considering my input.
Sincerely,
Pranav Kaushik Balachandar
