Comment Text:
Dear Chairman and Commissioners,
My name is Tanay Gulwadi, and I'm an everyday citizen from New Jersey. I'm 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've been actively trading on platforms like Kalshi, and I believe these markets provide immense value to people like me and to society as a whole. I want to share why I think the CFTC should support proportionate regulation rather than bans or overly restrictive rules.
First off, prediction markets give me access to information I can't find anywhere else. I've seen firsthand how their forecasts on elections and public events are often more accurate than polls or pundits. That kind of insight helps me make better decisions, whether it's understanding political shifts or economic trends. It's not just useful for traders; it's valuable for anyone paying attention to the world. Beyond that, these markets let regular people like me participate in a fair and open way. Shutting out everyday citizens while letting big institutions dominate would keep all the good information with them, and that's not right.
I also want to push back on the idea that event contracts are gambling. Trading on Kalshi takes research, judgment, and a real understanding of what's happening in the world, just like investing in stocks. These contracts serve legitimate purposes, like price discovery and helping people hedge against uncertainty. Classifying them as "gaming" feels like a misstep to me, and I urge the CFTC to consider this in response to Questions 15-22 about listed activities. These aren't games; they're tools for better decision-making.
I'm also worried about what happens if these markets get banned or over-regulated. I've seen unregulated offshore platforms out there, and they're far riskier than a CFTC-registered market like Kalshi. If the U.S. pushes this activity away, it won't stop; it'll just move to less safe places. On top of that, the U.S. should be leading in financial innovation, not letting other countries take the lead. These points tie directly to Questions 7-14 on public interest, where I believe innovation and consumer protection can go hand in hand with smart rules.
Finally, I know there are concerns about manipulation or insider trading, but the CFTC already has strong tools to handle those issues. Banning entire markets to stop a few bad actors punishes everyone else. I hope the CFTC focuses on using existing powers, as discussed in Questions 1-6 on core principles and Questions 29-32 on inside information, rather than creating broad restrictions.
I truly believe prediction markets make our society better by improving information and giving people a stake in understanding public events. Please support proportionate regulation that keeps these markets legal, safe, and accessible to everyday citizens like me.
Sincerely,
Tanay Gulwadi
