Gemini Slams CFTC’s Proposal to Ban Event Contracts and Prediction Markets
Gemini, a prominent cryptocurrency exchange, has expressed disapproval of the CFTC’s (Commodity Futures Trading Commission) proposal to prohibit event contracts and prediction markets, particularly Polymarket. The CFTC’s proposal, announced in May 2024, has been met with widespread criticism from the crypto community, with Tyler Winklevoss, co-founder of Gemini, taking the lead.
According to Winklevoss, “prediction markets are essential for the ability of individuals to make informed decisions and for a market to price information in exchange. If the CFTC were to ban prediction markets, it would be seen as an intrusive means of disenfranchising valuable information to the public” and “the decentralization of financial services should be considered reprehensible.”
Decentralized prediction markets are a powerful tool for people to make informed decisions, Winklevoss stated. However, the CFTC’s proposal would undermine this innovation and restrict individuals from participating in these markets.
Winklevoss criticized the CFTC’s proposal to ban event contracts and prediction markets, calling it an overreach from what she has determined to comply with Supreme Court rules. According to a Coinbase spokesperson, the opposition highlights the contradictions and inconsistencies within the CFTC’s proposed definition of “gaming,” which is not consistent with best practice.
Many have expressed doubts about the CFTC’s ability to regulate these markets, as evidenced by the controversial nature of the proposal. The agency will review the comments and feedback received during the public consultation period before making a decision. But one thing is certain: the crypto community will resist all regulatory efforts to stifle innovation and limit access to valuable information.
Gemini strongly criticised the CFTC’s decision last week to ban event contracts and prediction markets, saying that “the idea of decentralized markets means working within those limits set by statute”. Despite the ongoing debate, it is evident that the crypto community will not go down without a fight.
For more insights on the CFTC’s proposal and its impact on the crypto industry, read our article: “CFTC’s Proposal to Ban Prediction Markets: What You Need to Know” on CoinSeeks.com.
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