Comment Text:
Dear Chairman and Commissioners,
My name is Aswani Kumar Bodapati, and I'm a software engineer based in Illinois. I'm writing to express my support for the proportionate regulation of prediction markets in response to your Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). As someone in the tech field, I value data-driven tools and innovation, and I believe prediction markets offer unique benefits for society if regulated properly.
I've used prediction markets a few times myself, mostly to follow election outcomes and other public events. What struck me is how much more accurate their forecasts are compared to traditional polls or pundits. These platforms aggregate information in a way that cuts through noise and bias, giving insights that help not just traders like me but anyone looking for reliable data, including policymakers and the public. In my line of work, good information is everything, and I see prediction markets as a powerful tool for better decision-making.
I also think it's critical to keep these markets regulated here in the U.S. Platforms like Kalshi, operating under CFTC oversight, are far safer than unregulated offshore alternatives. If we ban or over-restrict prediction markets, we're just pushing activity to less transparent, riskier venues where consumers have no protection. I'd much rather see the CFTC focus on smart rules that keep innovation alive while addressing real concerns. Plus, the U.S. should be leading in financial tech, not ceding ground to other countries.
On specific issues, I want to address a few of your questions from the ANPR. Regarding Questions 7-14 on public interest, I believe informed trading actually improves price discovery and benefits everyone, not just participants. Accurate pricing on events like elections or economic indicators helps society at large. As for Questions 29-32 on inside information, I'm confident the CFTC already has strong tools to tackle manipulation and insider trading in other markets. These can be adapted here without shutting down entire categories of contracts. And to Questions 15-22 on listed activities, I don't see event contracts as gambling. They serve real economic purposes, like hedging risks or gaining insights, much like other derivatives.
I understand there are risks, like potential manipulation or misuse. But banning these markets or over-regulating them isn't the answer. It punishes regular folks like me who want to participate in a legal, transparent system. Instead, I urge you to craft targeted rules that address specific problems while preserving access and innovation.
Thank you for considering my views. I strongly support well-regulated prediction markets and ask that the CFTC avoid broad restrictions or outright bans. Let's keep this valuable tool accessible and safe under your oversight.
Sincerely,
Aswani Kumar Bodapati
