Gemini and Coinbase oppose the CFTC’s plan to regulate event contracts, saying it could harm cryptocurrency innovation and prediction markets.
Cameron Winklevoss noted a recent Supreme Court ruling that might challenge the CFTC’s ban, which could also impact platforms like Polymarket.
Coinbase and Winklevoss Twins Oppose CFTC’s Event Contracts Ban
Coinbase has strongly opposed the CFTC’s proposal to regulate event contracts, questioning the commission’s authority to impose such a ban. The company expressed concerns that labeling event contracts under the broad category of ‘gaming’ is not in the public interest and would hinder the industry’s progress.
Cameron Winklevoss echoed these concerns in a thread posted on X, emphasizing the need for greater transparency and the importance of prediction platforms in this context. He noted that the proposed rules would ban all event contracts in the USA, which could severely impact leading prediction markets like Polymarket. Winklevoss argued that these emerging markets, which capture the ‘voice of the crowd,’ deserve protection rather than prohibition.
Source: X
Cameron Winklevoss Warns CFTC Against Overstepping Authority
Cameron Winklevoss cited a recent Supreme Court decision in Loper Bright Enterprises v. Raimondo, where the court ruled that regulatory agencies cannot expand their authority through rulemaking. He warned that if the CFTC moves forward with its proposed ban on event contracts, it could face legal challenges and potentially be stopped by the courts.
The push by Gemini and Coinbase to pressure the CFTC highlights the ongoing tension between regulatory agencies and the crypto market. As this proposal remains under discussion, the future of prediction markets and the broader crypto industry in the United States remains uncertain.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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