According to ChainCatcher, Dragonfly and Crypto.com criticized the CFTC’s proposed prediction market rules.
The CFTC’s proposed rule broadly categorizes and prohibits certain event contracts, including those related to gambling (Coinbase said the CFTC’s proposed gambling definition was too vague) and election contracts, raising concerns that the overreach exceeds statutory authority, stifles innovation and ignores the economic benefits these contracts provide, the people said.
“Political event contracts should not be equated with gambling games such as the Super Bowl,” Dragonfly’s Jessica Furr and legal counsel Bryan Edelman wrote in a letter to the CFTC. “Rather, elections have significant economic implications. These contracts are intended to serve a critical risk hedging function, comply with the requirements of the Commodity Exchange Act (CEA), and provide valuable predictive data to the public.”