Comment Text:
Dear Chairman and Commissioners,
My name is Satyanarayana Teeparti, and Im a business owner based in Illinois. Im 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). As someone who actively trades on platforms like Kalshi, Ive seen firsthand how these markets provide unique value, both for my business and for society at large.
Running a business comes with constant uncertainty, especially around economic policies, interest rates, and regulatory changes. Prediction markets give me a way to hedge some of those risks. For instance, Ive used event contracts to offset potential impacts of election outcomes on my taxes and supply chain costs. This isnt gambling; its a practical tool, much like using futures to lock in commodity prices. Beyond hedging, the prices on these markets often give me better insights than polls or news pundits. Ive noticed their forecasts are consistently sharper, which helps me make informed decisions for my business and personal finances. This kind of information isnt just useful to traders like me; it benefits everyone when accurate predictions shape public understanding.
I also believe the U.S. must lead in financial innovation. If we over-restrict or ban prediction markets, we risk pushing activity to unregulated offshore platforms, which are far less safe for participants like me. Regulated markets, such as Kalshi operating under CFTC oversight, provide transparency and accountability that protect users. Banning or overly restricting these markets doesnt solve problems; it just drives them out of sight. On that note, Im glad the CFTC already has strong tools to tackle manipulation and insider trading in derivatives markets. Those same tools can be adapted here without resorting to broad prohibitions. I also think informed trading actually helps price discovery, making markets more accurate for everyone, as long as existing laws against insider abuse are enforced.
Id like to address a few specific questions from the ANPR. On Questions 7-14 under Public Interest, I urge you to recognize the balance between innovation and protection by supporting regulated prediction markets as a public good for price discovery and risk management. For Questions 15-22 on Listed Activities, I strongly believe event contracts should not be classified as gaming; they serve legitimate economic purposes like hedging and information aggregation. And regarding Questions 23-28 on Procedural Aspects, I support proportionate, case-by-case analysis over categorical bans to avoid stifling useful markets.
In closing, I ask the CFTC to adopt targeted, proportionate regulations for prediction markets rather than imposing broad restrictions. Lets keep the U.S. at the forefront of financial innovation while ensuring safety through oversight. Thank you for considering my perspective.
Sincerely,
Satyanarayana Teeparti
