It's not really a winning argument to say "We should be allowed to make money doing this harmful thing because many other people are also making money in a very different way with a different set of risks and potential harms"
The only difference is that equity markets are orders of magnitude larger than prediction markets in both depth and liquidity and offer much more incentive for fraud/tampering given the much much higher rewards.
Should we ban biotech companies from raising money in public equity markets since the risk is so much higher than prediction markets?
It's embarrassing that Kalshi's spokesman thought that statement would make the company look any better.