Comment Text:
Election contracts, such as those provided by Kalshi, offer a unique and valuable source of predictive data that helps us navigate the complex landscape of regulatory changes and economic policy shifts that follow political events.
The insights gained from these contracts allow us to anticipate potential disruptions and adapt our business strategies accordingly. For instance, changes in data privacy regulations, technology export controls, and cybersecurity policies can significantly impact our operations and market positioning. Election contracts provide a legal, regulated, and transparent means to gauge market sentiment and prepare for these changes.
The proposed ban on these contracts by the CFTC would remove an essential tool for risk management and market transparency. These contracts are not akin to gambling; they are sophisticated financial instruments that offer significant utility to businesses and investors. Restricting them would drive this activity to unregulated markets, increasing risks and reducing the quality of available data.
Effective regulation should recognize the value of innovation and support the development of markets that enhance economic efficiency and transparency. I urge the CFTC to reconsider the proposed restrictions and to engage with stakeholders to understand the practical benefits of these contracts. Extending the comment period and holding a roundtable discussion would facilitate a more informed regulatory approach.
