According to TechFlow, cryptocurrency exchanges Coinbase, Dragonfly and Crypto.com recently jointly criticized the new prediction market regulations proposed by the U.S. Commodity Futures Trading Commission (CFTC). The main points of contention are as follows:
The new rules will prohibit certain event contracts, including those related to games and elections. Coinbase believes the CFTC’s definition of games is too vague.
Dragonfly stressed that political event contracts should not be equated with gambling on games of chance such as the Super Bowl, as elections have a significant impact on the economy. Crypto.com pointed out that the CFTC's attempt to ban prediction markets violates the three-step evaluation process set out in the CEA.
UCLA law professor Joseph Fishkin said prediction markets provide valuable insights into public opinion and political events and should not be over-regulated.