TechFlow news: Coinbase Chief Legal Officer Paul Grewal posted a tweet criticizing a new proposal from the U.S. Commodity Futures Trading Commission (CFTC). Grewal pointed out that the proposal has definitional issues, noting that its broad definition of "gaming" could lead to banning prediction contracts on events such as the Nobel Prize and the Oscars. He argued that this definition contradicts legislative history and could negatively impact emerging CFTC-regulated markets.
Grewal also stated that the proposal's approach of evaluating contracts "by category" is not in the public interest, exceeds the CFTC's statutory authority, and overlooks the public benefits of prediction markets. He urged the CFTC to withdraw the proposal and collaborate with academia, industry, and policy stakeholders to develop a more balanced approach that fosters innovation while protecting the public interest.
Coinbase supports the CFTC's mission to uphold the integrity of U.S. derivatives markets but believes that if adopted, the current proposal would ban numerous prediction contracts without sufficient justification. Grewal expressed Coinbase's willingness to work with the CFTC to promote responsible innovation and maintain market integrity.
