Comment Text:
Dear Chairman and Commissioners,
My name is Krishna Chandrasekaran, and I'm an everyday citizen from Texas who actively trades on prediction markets like Kalshi. I'm writing in response to the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516) to express my strong support for well-regulated prediction markets. I believe they provide unique value to people like me, as well as society at large, and I urge the CFTC to adopt proportionate regulations rather than overly restrictive bans.
I started trading on Kalshi because I wanted better information about events that affect my life, like elections and economic indicators. The forecasts on prediction markets are often more accurate than polls or pundits, and that helps me make informed decisions, whether it's planning my budget around inflation data or understanding political outcomes that might impact my taxes. This isn't just about me, though. These markets aggregate information in a way that benefits everyone, from regular folks to policymakers who need reliable data. I also use these markets to hedge personal financial risks, like potential policy changes that could affect my costs of living. It's a practical tool, not a game.
I know there are concerns about manipulation or insider trading, and I get that those are real risks. But the CFTC already has strong tools to address these issues, just as you do for other derivatives markets. Banning or over-restricting prediction markets doesn't solve the problem; it just pushes activity to unregulated offshore platforms where there's no oversight at all. I've seen how Kalshi operates under CFTC rules, and that structure makes me feel much safer as a consumer compared to shady alternatives. Regulation, not prohibition, is the answer.
I'm also worried about the idea of classifying event contracts as gaming. That label doesn't fit. Trading on these markets requires research and judgment about real-world events, just like investing in stocks. It serves legitimate purposes like hedging and price discovery, not entertainment. Plus, informed trading actually improves the accuracy of prices, which helps everyone. Addressing specific questions in your ANPR, like Question 8 on public interest and Question 15 on defining gaming, I believe the CFTC should recognize the economic value of these contracts and regulate them accordingly, not lump them in with gambling.
Finally, I think the US has a chance to lead in financial innovation. If we over-regulate or ban these markets, we're just handing the future to other countries. Targeted, proportionate rules make more sense than broad categorical bans. Please support the growth of prediction markets with fair oversight that protects consumers while allowing participation.
Thank you for considering my views.
Sincerely,
Krishna Chandrasekaran
