Comment Text:
I have a background in international relations, meaning I have observed the significant influence that political events, particularly elections, have on global markets and economic policies. Election contracts, such as those proposed to be offered by Kalshi, would provide a crucial tool for understanding and anticipating these impacts. These contracts give a regulated and transparent space to assess market sentiment regarding political outcomes, which is essential for developing informed strategies and recommendations. The data generated by these contracts would enhance market transparency and provides valuable insights into potential policy changes and economic shifts.
The restrictions on election contracts proposed by the CFTC overlook their utility and the significant benefits they provide. These contracts are not speculative tools; they should be legal, regulated, and not forcing users to move to offshore platforms. Restricting them would drive this activity to unregulated markets, increasing risks and reducing the availability of valuable data.
I urge the CFTC to reconsider the proposed rules and to engage with stakeholders to understand the practical benefits of these contracts. Extending the comment period and holding a roundtable discussion would allow for a more informed and balanced regulatory approach.
