According to TechFlow, on August 9, The Block reported that Coinbase criticized the U.S. Commodity Futures Trading Commission (CFTC) on Thursday night, opposing its proposed rules to ban certain event contracts. Coinbase Chief Legal Officer Paul Grewal said at X that the event market is a promising area in the future economy, and Coinbase fully supports the CFTC's mission to maintain the integrity of the U.S. derivatives market and believes that the CFTC can provide a strong regulatory framework for such emerging contracts. However, Grewal pointed out that if the proposal is passed, many prediction contracts will be banned without sufficient reason, which is inconsistent with the direction of market development.

Earlier this week, crypto skeptic Senator Elizabeth Warren joined other Democratic lawmakers in urging CFTC Chairman Rustin Bainum to quickly finalize and implement the rule to prevent the "commodification of American elections." They argue that election betting can undermine the sanctity of the democratic process, change the motivations behind voting, and replace political convictions with financial calculations. Lawmakers also worry that such bets could allow billionaires to make huge bets while supporting specific candidates or parties, and allow political insiders to use non-public information to make election bets, further reducing public trust in the electoral process.

The CFTC voted in May to propose a rule that would ban event contracts involving political contests, gaming, war, terrorism and assassinations. These contracts will not be allowed to be traded or cleared through CFTC-registered entities, in an effort to preserve the integrity of markets and elections.