Gemini and Coinbase Engage in a Conflict with the CFTC Regarding the 2024 Presidential Betting Ban!
Gemini, a prominent cryptocurrency exchange, has initiated legal action against CFTC.
Gemini, a major cryptocurrency exchange, has taken a daring stance by requesting that United States regulators withdraw a proposed regulation that would prohibit all event contracts on decentralized prediction markets. In an August 8 letter to Christopher Kirkpatrick, the administrator of the US Commodity Futures Trading Commission (CFTC), Gemini emphasized the “adverse impact” that this rule would have on prediction markets, which include those used to forecast elections.
Cameron Winklevoss, the co-founder of Gemini, utilized social media to emphasize the significance of platforms such as Polymarket. In an August 9 X post, Winklevoss stated that the CFTC should withdraw its Proposed Rule on event contracts, which would categorically prohibit all event contracts in the United States, including those traded on Polymarket. He underscored the distinctive integrity of decentralized prediction markets, which necessitate that participants place their money where their mouth is.
Crypto firm Coinbase has also spoken out against it. Paul Grewal, the Chief Legal Officer of Coinbase, contended that the proposed rule fails to acknowledge the public benefits of prediction markets.
The CFTC has been the subject of a recent confrontation following a new request from five US senators and three representatives. They requested the prohibition of wagering on the 2024 presidential election. They contend that these markets “could further erode public trust in democracy and influence and interfere with elections.”
The controversy surrounding this proposed regulation has escalated. In July, Polymarket, the world’s largest prediction market, experienced record volumes. Polymarket experienced a volume of $387.03 million, as per Dune Analytics. In June, the figure was $111.5 million. This figure has since gone up. This increase is indicative of the intense speculation regarding the forthcoming presidential election in the United States.
Gemini contends that decentralized prediction markets are a substantial innovation with genuine public utility. “In contrast to polls, pundits, or expert opinions, they necessitate that participants have a stake in the outcome,” Winklevoss stated. He emphasized that these platforms provide a level of integrity that is unmatched by other information sources.
Also Read: Thailand’s SEC opens a new regulatory sandbox for digital assets
