Comment Text:
Dear Chairman and Commissioners,
My name is Venkata Sai Duvvuri, 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 how these markets provide unique value, and I believe the CFTC should regulate them proportionately rather than imposing broad restrictions or bans.
I got into prediction markets because Im fascinated by data and forecasting, especially for elections and major public events. As a tech professional, I spend a lot of time analyzing trends and systems, and Ive found that prediction market prices often give a clearer, more accurate picture than polls or media speculation. This isnt just helpful for traders like me; its valuable for anyone trying to understand whats likely to happen, from journalists to policymakers. I also appreciate the freedom to participate in legal, regulated markets. Platforms like Kalshi operate under CFTC oversight, which makes me feel confident that there are rules in place to protect users and ensure fair trading.
Im concerned, though, that overly restrictive rules or outright bans would push activity to unregulated offshore platforms. Ive seen how tech communities adapt when access is limited; people find workarounds, often in less safe environments. Regulated markets are transparent and accountable, with safeguards against fraud and manipulation. Offshore sites dont have that. Banning or over-restricting prediction markets here in the US would just drive users like me to riskier options, which helps no one.
I also want to push back on the idea that event contracts are gaming. Trading on these markets isnt a game of chance. It takes research, analysis, and judgment, much like investing in stocks or futures. These contracts serve real economic purposes, like price discovery and hedging against uncertainty. And on the topic of informed trading, I believe it actually improves market accuracy. When knowledgeable participants trade, the prices reflect better information, which benefits everyone. This ties into my interest in academic research and data transparency; prediction markets are a goldmine for studying how information aggregates, and that shouldnt be stifled.
Looking at some of the specific questions in the ANPR, Id like to address Questions 7 and 8 under Public Interest. I think the CFTC should prioritize innovation by supporting regulated prediction markets while protecting consumers through targeted rules, not broad prohibitions. Also, regarding Question 15 under Listed Activities, I urge you not to classify event contracts as gaming; theyre a legitimate financial tool. And on Questions 29 and 30 about inside information, I believe informed trading enhances price discovery, and existing laws already prohibit insider trading by federal officials or others with nonpublic information.
I ask the CFTC to adopt proportionate regulations that address specific risks like manipulation without banning or over-restricting prediction markets. These platforms provide real value to people like me and to society as a whole. Lets keep them legal, safe, and accessible here in the US.
Sincerely,
Venkata Sai Duvvuri
