Also speculators serve an important purpose: hedging strategies require speculators on the other side. It is not just a "certain clientele," there are people who run profitable businesses on speculation (it amounts to collecting insurance premiums from people who want hedges).
Really it sounds like this is a disagreement about what it means for a market to be "regulated" -- I draw the line at compliance, you seem to draw the line elsewhere.
The CFTC was created to hedge real risk. Onions iirc?
Kalshi creates risk where there was none before. The 'future' on the 'commodity' of 'number of dunks by an aging shaq at a halftime show'.
Courts have taken the dimmest possible view of this legal fabrication and I expect their losses in courts to continue without direct intervention by the Trump scions.
As an excluded commodity. Based on the CFTC's own rule making. Based on this logic the SEC can go back to deciding it gets to regulate anything as securities fraud.