Comment Text:
Dear Chairman and Commissioners,
My name is Kirt Singh, and Im a trader and investor based in California. Im writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets, as published in 91 FR 12516. Ive used prediction markets a few times myself, and I strongly support their continued operation under fair and reasonable regulation by the CFTC. I believe these markets provide unique value to society and to people like me who wantKET: value to society and to people like me who participate in them.
As a trader, Ive seen firsthand how prediction markets often produce forecasts that are far more accurate than polls or pundit opinions. Ive relied on platforms like Kalshi to get a read on election outcomes and economic indicators, and Ive found their predictions to be incredibly useful for making informed decisions. This isnt just helpful for investors like me; the information these markets generate benefits everyone by offering clearer insights into what might happen next in the world. Its a democratizing force, letting regular folks like me access data that would otherwise be locked away with big institutions.
Im especially passionate about the freedom to participate in legal, regulated markets. Prediction markets arent gambling, in my view. They require research, analysis, and judgment, much like trading stocks or commodities. Shutting down or overly restricting these markets would be a mistake, cutting off a valuable tool for many of us. I also think its worth noting that banning them wont stop activity; itll just push it to unregulated offshore platforms where theres less oversight. Keeping these markets under CFTC supervision is the safer path.
Id like to address a concern I know the CFTC has raised in questions 29-32 of the ANPR about insider trading. I understand the worry about bad actors, but insider trading and market manipulation are already illegal. The CFTC has the authority to enforce these laws, and I believe focusing on enforcement rather than broad bans is the right approach. Punishing everyone for the actions of a few doesnt make sense to me; its like closing the stock market because of insider trading scandals.
On the public interest topic, as discussed in questions 7-14, I believe prediction markets serve a real purpose in price discovery and risk management. Theyve helped me gauge uncertainties that affect my investments, and I know others use them to hedge against political or economic risks. This isnt just about profit; its about clarity in a complex world.
I urge the CFTC to support proportionate regulation of prediction markets. Dont impose categorical bans or restrictions that could stifle this innovative tool. Instead, craft rules that target specific risks while preserving access for everyday traders like me. Thank you for considering my input, and I hope the final framework reflects a balanced approach that keeps these markets accessible and safe.
Sincerely,
Kirt Singh
