Companies like Robinhood and Coinbase oppose the U.S. CFTC's regulation of political prediction markets
ChainCatcher news, according to The Block, a rule change proposed by the Commodity Futures Trading Commission (CFTC) may threaten the operation of rapidly growing political prediction markets like Polymarket in the United States, sparking strong opposition from cryptocurrency and fintech companies. The dissenting voices come from companies such as Gemini, Crypto.com, Robinhood, Coinbase, as well as individuals like well-known blogger Scott Alexander.Industry insiders believe that the CFTC's proposal exceeds its regulatory authority. Crypto.com Senior Vice President Steve Humenik stated that the CFTC "is neither a gambling regulator nor an election regulator, and is not qualified to oversee this market."Legal experts at Dragonfly Capital argue that the Supreme Court's overturning of the Chevron doctrine means that the CFTC must ensure it has the authority to regulate these contracts. Meanwhile, Cameron Winklevoss, one of the founders of Gemini, has called on the CFTC to "retract this proposal and work with industry stakeholders to redefine it." Cryptocurrency companies generally believe that the CFTC's move will severely undermine the rights of U.S. citizens to access these powerful markets and are urging the CFTC to reconsider its proposal.
