Comment Text:
Dear CFTC,
I am writing to you as a small business owner in San Francisco who primarily uses market data and forecasts to navigate the economic and political landscape. My business thrives on the ability to anticipate changes in the market, which often stem from political events such as elections. Election contracts, like those offered by Kalshi, are invaluable tools that help me prepare for potential shifts in policy that could impact my business operations and strategic planning.
The argument that these contracts resemble gambling is unfounded and overlooks their practical applications. These contracts are legal, regulated, and safe, offering structured and transparent means for businesses like mine to hedge against uncertainties. They provide market participants with crucial insights that enhance market transparency and enable effective risk management. Effective regulation should involve a collaborative approach that includes feedback from stakeholders who understand the practical implications of these markets. The proposed ban on election contracts would strip away a vital tool that supports small businesses in making informed decisions. The ability to predict and prepare for political changes is essential for small business owners. I hope the Commission recognizes the value of these contracts and works towards a regulatory framework that supports innovation while ensuring market integrity.
Thank you for your attention to this matter.
Sincerely,
