TechFlow news, according to TheBlock, a proposed rule change by the U.S. Commodity Futures Trading Commission (CFTC) could threaten the operations of rapidly growing political prediction markets like Polymarket in the United States, sparking strong opposition from cryptocurrency and fintech companies. Firms including Gemini, Crypto.com, Robinhood, and Coinbase, as well as individuals such as prominent blogger Scott Alexander, have voiced their objections.
Industry insiders argue that the CFTC's proposal exceeds its regulatory authority. Steve Humenik, Senior Vice President at Crypto.com, stated that the CFTC "is neither a gambling regulator nor an election regulator, and therefore lacks the qualifications to oversee this market." Legal counsel at Dragonfly Capital noted that with the Supreme Court overturning the Chevron doctrine, the CFTC must now clearly demonstrate it has the legal authority to regulate these contracts. Cameron Winklevoss, co-founder of Gemini, urged the CFTC to "withdraw this proposal and work with industry stakeholders to develop a new framework." Cryptocurrency firms broadly believe this move would severely undermine American citizens' access to these powerful markets and are calling on the CFTC to reconsider its proposal.
