Gemini and Coinbase dispute the CFTC's proposal to regulate event contracts, stating that it poses a threat to innovation in the trading of cryptocurrencies and the development of prediction markets.
Cameron Winklevoss uses a recent Supreme Court decision to point out possible legal issues if the CFTC proceeds with its proposed prohibition of event contracts.
The proposed regulations may potentially affect the market leaders of prediction markets such as Polymarket.
Gemini and Coinbase, two of the major American crypto exchanges, have filed an opposition to the event contracts regulation proposed by the CFTC in May 2024. The regulation applies to event contracts and both companies claim that such regulation would harm the future of cryptocurrency and the prediction market.Industry leaders have opposed the proposed regulation due to the potential negative impacts, as confirmed by the CFTC.
Coinbase's Position Against Prohibition
Coinbase has also opposed the CFTC's proposal, arguing against the commission's relevance in imposing such a ban. The company has also expressed concerns about the likely impact of their enforcement under the broad label of 'gaming.' Coinbase has argued that such classification is not in the public interest and would hamper the advancement of the industry.
The same concerns were voiced in another thread posted on X, where Cameron Winklevoss stressed the need to be more transparent and pointed to the place of prediction platforms within this context.
According to his post, rules are meant to prohibit all event contracts in the USA, significantly influencing top prediction markets like Polymarket. He mentioned that these markets have recently emerged, and they can collect the 'voice of the crowd' as the reasons that should compel their preservation.
https://twitter.com/tyler/status/1822121660335440180
Cameron Winklevoss also quoted a recent Supreme Court decision in Loper Bright Enterprises v Raimondo, wherein the court held that regulatory agencies could not gain new authority through rulemaking. He stated that if the CFTC intends to proceed with the proposed ban, it may risk being stopped in court.
The call by Gemini and Coinbase to pressure the CFTC is one way of demonstrating the rivalry between regulatory agencies and the crypto markets. With this proposal still up for discussion, the fate of this prediction market and even the crypto sphere as a whole in the United States is yet to be seen.
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