1 month ago
Coinbase has urged the US Commodities Futures Trading Commission (CFTC) to retreat a connection that could impact prediction markets similar Polymarket, according to an Aug. 8 letter.
Paul Grewal, Coinbase’s Chief Legal Officer, criticized the connection for its wide and unclear explanation of “gaming” and its assertion that “gaming” contracts are against the nationalist interest.
Coinbase contends that the connection exceeds the Commission’s statutory authorization and deviates from the modular signifier of evaluating contracts individually.
The steadfast besides argued that the connection was economically unsound. Grewal pointed retired that the CFTC’s connection fails to admit the affirmative economical interaction of prediction markets and lacks grounds to substantiate claims that these markets could harm investors.
The missive stated:
“The Proposal questions their technological merit and highlights their imaginable to harm investors, but without citing grounds to enactment these conclusions.
Consequently, Coinbase called connected the CFTC to either retreat oregon revise the connection to enactment liable innovation alternatively than broadly categorizing each lawsuit contracts arsenic gaming.
Coinbase asserted:
“We firmly judge that this all-or-nothing attack to the attraction of lawsuit contracts is not accordant with the promotion of liable innovation and maturation successful regulated, transparent markets with due safeguards to support marketplace integrity and support customers.”
Coinbase’s determination gained important enactment from the crypto community, with CoinFund President Chris Perkins urging the CFTC to “stop suppressing innovation and truth.” He added that these platforms are not against the nationalist interest, noting that they supply indispensable datasets that payment the public.
Prediction markets’ popularity soar
Meanwhile, the crypto community’s defence of prediction markets comes arsenic these platforms person gained important popularity during the past year, peculiarly successful betting connected events similar the 2024 US statesmanlike election.
Platforms specified arsenic Polymarket person seen substantial activity, with implicit $1 cardinal successful full betting measurement and implicit $550 cardinal successful bets connected the result of the US predetermination alone.
In effect to this surge, the CFTC projected successful May to restrict circumstantial lawsuit contracts, particularly those related to governmental events, citing concerns implicit marketplace integrity and nationalist interest.
Notably, immoderate lawmakers led by Senator Elizabeth Warren precocious supported the regulator’s determination portion criticizing the “commodification” of US elections.
The station Coinbase calls CFTC connection against prediction markets economically unsound appeared archetypal connected CryptoSlate.
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