Comment Text:
Dear Chairman and Commissioners,
My name is Armaan Mitha, and I'm a trader and investor based in Texas. I'm writing to comment on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. As someone who actively trades on platforms like Kalshi, I strongly support the development of well-regulated prediction markets in the United States, and I want to share my perspective on why this matters.
I've been trading on prediction markets for a while now, and I value the ability to participate in legal, regulated platforms. These markets aren't just a hobby for me; they provide unique information and a way to hedge against real-world uncertainties that affect my financial decisions. Whether it's an election outcome or an economic policy shift, the data I get from these markets often feels more reliable than what I hear from pundits or polls. I believe this kind of access shouldn't be limited to big institutions. Regular traders like me should have the same opportunity to engage, and regulated platforms make that possible in a safe way.
What worries me is the idea of banning or over-restricting these markets. If the CFTC clamps down too hard, it won't stop people from trading. Itll just push activity to unregulated offshore platforms where there's no oversight, no consumer protection, and no accountability. I've seen how Kalshi operates under CFTC rules, with clear transparency and safeguards. Thats a far better option than driving traders like me to sketchy foreign sites. The U.S. has a chance to lead in financial innovation here, to set the standard for how prediction markets should work globally. We shouldn't cede that ground to other countries by over-regulating or shutting things down.
I also want to address some of the concerns I know the CFTC has, especially around manipulation or insider trading, as raised in questions 29-32 of the ANPR. I get why these are issues, but broad categorical bans aren't the answer. The CFTC already has tools to tackle bad actors, and those should be applied with targeted, proportionate rules. Punishing everyone for the actions of a few doesn't make sense. Focus on enforcing existing laws and adapting them to event contracts, not on sweeping prohibitions.
I'm also drawn to questions 7-14 about balancing innovation and public interest. Prediction markets are innovative, no doubt, and they serve a real purpose for price discovery and risk management. The CFTC can protect consumers without stifling this potential by keeping regulation reasonable and focused.
In short, I urge the Commission to support proportionate regulation of prediction markets. Don't ban or over-restrict them. Allow traders like me to keep participating in legal, regulated spaces where we can contribute to and benefit from these unique tools. Thank you for considering my input.
Sincerely,
Armaan Mitha
