Comment Text:
As the owner of a small business, I have experienced firsthand how political changes can impact our industry. Regulations on alcohol production, distribution, and sales, as well as tax policies, are all subject to legislative shifts that can significantly affect our operations. Kalshi’s election contracts could provide us with critical insights into these changes, allowing us to better plan and hedge against potential risks.
The CFTC’s move to ban these contracts is counterproductive and overlooks the practical benefits they offer to small businesses like mine. Running a brewery requires constant adjustment to regulatory changes, and having a reliable way to predict these shifts is invaluable. These contracts would help us anticipate policy changes, manage our supply chain more effectively, and make informed decisions about expansion and investment. Without such tools, we are left to navigate these uncertainties blindly, which can lead to costly mistakes and missed opportunities.
Moreover, the regulatory compliance and transparency offered by Kalshi’s contracts provide a level of security and reliability that is lacking in many other predictive methods. This ensures that the data we rely on is accurate and trustworthy, allowing us to make better strategic decisions. The CFTC’s proposal to prohibit these markets not only limits our ability to manage risk but also stifles innovation and growth in our industry. We need more tools to help us navigate the complexities of political risk, not fewer.
