Comment Text:
Dear Chairman and Commissioners,
My name is Rohan Patel, and Im a journalist and content creator based in Florida. Im writing to express my strong support for the proportionate regulation of prediction markets in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). As someone who relies on accurate information for my work, Ive come to see platforms like Kalshi as invaluable, both for the insights they provide and for their potential to help everyday people like me navigate uncertainty.
I dont actively trade on prediction markets myself, but I follow them closely for my videos and reporting. The data from Kalshi often gives me a clearer picture of whats likely to happen with elections or other public events than traditional polls or punditry. That kind of forecasting isnt just useful for me; its a public good. It helps people make informed decisions, whether theyre voting, planning a business move, or just trying to understand the world. I also see how these markets let individuals and small businesses hedge real financial risks, like a policy change impacting taxes or a regulatory shift affecting operations. This isnt gambling, its a practical tool. Classifying event contracts as gaming, as some suggest, ignores their legitimate economic purpose, and I urge the CFTC to recognize that distinction when addressing questions like 15 and 16 in your ANPR.
Im also concerned about what happens if these markets are banned or over-restricted. If platforms like Kalshi, which operate under CFTC oversight, get shut down, people wont just stop participating. Theyll turn to unregulated offshore alternatives that offer no consumer protections. Id much rather see the U.S. lead in financial innovation with safe, regulated markets than push activity into riskier spaces. This ties directly to questions 7 and 8 in your notice about balancing innovation and public interest. Regulation, not prohibition, is the way to protect consumers.
On the issue of manipulation and insider trading, raised in questions 29 through 32, I believe the CFTC already has strong tools to address bad actors. These markets shouldnt be punished for the potential actions of a few when existing laws can target those problems directly. Banning prediction markets to stop insider trading would be like closing the stock market for the same reason. Its overkill and hurts the wrong people.
I also want to highlight the academic research supporting prediction markets, which shows they aggregate information efficiently. Thats not just theory, its something I see in practice as a journalist. Better data transparency from these platforms can improve public decision-making, and I hope the CFTC considers this value when weighing costs and benefits in questions 33 to 40.
In closing, I ask the CFTC to support well-regulated prediction markets that allow regular citizens to participate legally and safely. Platforms like Kalshi are a step forward for forecasting, hedging, and innovation. Please dont let over-restriction push this activity offshore or undermine its potential. Thank you for considering my perspective.
Sincerely,
Rohan Patel
