Dragonfly and Crypto.com join Coinbase in criticizing the CFTC's proposed rules for prediction markets. The CFTC's proposed rules broadly categorize and prohibit certain event contracts, including gambling-related contracts and election-related contracts; Coinbase believes that the CFTC's definition of gambling is too vague and is concerned that this overexpansion exceeds statutory authority, inhibits innovation, and ignores the economic benefits provided by these contracts. Dragonfly legal counsel said in a letter to the CFTC that political event contracts should not be equated with gambling on games like the Super Bowl. On the contrary, elections have significant economic impacts and are intended to provide important risk hedging functions, which are in line with the requirements of the Commodity Exchange Act (CEA). Steve Humenik, special vice president of capital markets at Crypto.com, believes that the CFTC's attempt to ban prediction markets violates the rule-designation procedures set forth by the CEA. (CoinDesk)