Crypto.com, Gemini, and Coinbase oppose CFTC proposal threatening U.S. Prediction markets like Polymarket.

Crypto.com, Gemini, and Coinbase have all filed objections to a CFTC proposal that could sharply restrict or effectively ban some prediction markets in the U.S., including platforms such as Polymarket. The proposal, issued in May, targets certain event contracts—especially those tied to political outcomes—and has drawn criticism from the exchanges for being too broad and for lacking a clear evidentiary showing that these markets have caused harm. The core dispute is over how the Commodity Exchange Act should be interpreted and whether the CFTC has authority to classify prediction-market contracts as prohibited “gaming” or otherwise outside the public interest. Gemini argued the rule conflicts with Congress’s intent and could invite legal challenges, while Coinbase said the commission’s definition of “gaming” is vague and urged regulators to withdraw the proposal and work with industry and policy stakeholders on a narrower framework. Crypto.com joined that push, adding another major crypto venue to the opposition. The issue matters because prediction markets have grown quickly alongside election-related trading, and a restrictive CFTC rule could constrain a fast-expanding sector at the intersection of crypto, derivatives, and political forecasting.

✨ AI-generated background, compiled from web sources — not editorial content.

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• Polymarket
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