Coinbase opposes the proposed rulemaking by the U.S. CFTC to ban prediction contracts

ChainCatcher news, according to The Block, Coinbase criticized the Commodity Futures Trading Commission (CFTC) on Thursday evening for its proposed rulemaking that would ban certain prediction contracts.

Coinbase's Chief Legal Officer Paul Grewal posted on the X platform: "The CFTC market is a promising area for our future economy, which is why we are responding today to the CFTC's proposed rulemaking notice. We fully support the CFTC's mission to maintain the integrity of the U.S. derivatives market and believe they can provide a strong regulatory framework for this emerging category of contracts. However, if this proposal is adopted, it would unjustifiably ban many prediction contracts." Grewal further pointed out that the proposal categorizes contracts as not in the public interest and exceeds the CFTC's statutory authority.

In a more detailed letter to CFTC Secretary Christopher Kirkpatrick, Coinbase "strongly" urged the CFTC to withdraw the proposal and collaborate with academia, industry, and policy stakeholders to develop a "more balanced" approach to promote innovation while maintaining market integrity.