Cryptocurrency

Chair

Read

The <a href="https://coingape.com/cftc-classifies-ethereum-and-litecoin-as-commodities-in-kucoin-case/">Commodity Futures Trading Commission</a> (CFTC) has just published a proposal that would limit the trading of event contracts that envision political results. After a three-and-a-half-hour meeting on a Friday, three commissioners voted in favor of the proposed rulemaking. The public will now be able to comment on these plans. CFTC Chair <a href="https://coingape.com/cftc-chair-rostin-behnam-reprimand-binance-for-deliberately-breaking-us-laws/">Rostin Behnam</a> considered commoditizing a democratic process to be the purpose of a political event contract. Thus, the latter’s scope may extend beyond the CFTC’s mission, and the commission might be transformed into an election overseer. 
<h2 id="strong-cftc-proposes-ban-on-politically-tied-contracts-strong">CFTC Proposes Ban on Politically Tied Contracts</h2> 
However, along with political tendencies, the provided rulings will also ban agreements financing situations like games, wars, terrorism, and assassination, and the creation of these sanctions will be aimed at the national interests, not at all. Behnam, on this note, says that there has been a significant rise in the number of event contracts starting from 2021, more than in the previous 15 years. This alone includes more contracts listed in 2021 than the whole of the years from 2007 to 2021. The phenomenon has repeatedly been observed, which emphasizes the amazing speed of the market’s enlargement. 
Despite the majority support for the proposal, CFTC Commissioner Caroline Pham criticized the move as misguided. <a rel="nofollow" href="https://www.cftc.gov/PressRoom/PressReleases/8906-24">Pham argued </a>that the rulemaking process diverged from the principles of the Administrative Procedure Act and the Constitution. She expressed concerns about the commission’s deviation from its core responsibilities and its apparent disregard for fairness and due process. This internal dissent points to a deeper debate within the CFTC about the balance between regulation and market freedom. 
<h2 id="strong-behnam-predicts-tighter-cryptocurrency-market-regulations-strong">Behnam Predicts Tighter Cryptocurrency Market Regulations</h2> 
Meanwhile, platforms like Kalshi and <a href="https://coingape.com/spot-ethereum-etf-polymarket-pegs-approval-odds-at-45/">Polymarket</a>, which allow users to speculate on a variety of future events, face increased scrutiny. In the past, the CFTC rejected Kalshi’s contract, which facilitated bets on political outcomes, a decision that Kalshi contested as an overreach of authority. The firm, backed by investment company Paradigm, has been vocal in its opposition to what it perceives as restrictive measures that stifle market innovation. 
The regulatory spotlight is also intensifying on the cryptocurrency sector, which, according to Behnam, has yet to feel the full extent of regulatory pressures. The <a href="https://coingape.com/crypto-regulation-cftc-chair-predicts-more-crackdowns-6-24-months/">CFTC chair</a> forecasted a new wave of enforcement actions targeting the cryptocurrency market within the next 6 to 24 months. This indicates a growing concern about the intersection of cryptocurrency and predictive markets, particularly how they are used and regulated. 
This focus on stricter regulations reflects a broader trend of regulatory bodies stepping up oversight of financial markets, especially those involving innovative and rapidly evolving technologies.&nbsp; 
Read Also: <a href="https://coingape.com/economist-warns-etf-outflows-could-pressure-bitcoin-down/">Economist Warns ETF Outflows Could Pressure Bitcoin Down</a> 
The post <a href="https://coingape.com/crypto-predictive-markets-face-cftc-crackdown-whats-next/">Crypto Predictive Markets Face CFTC Crackdown: What’s Next?</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Crypto Predictive Markets Face CFTC Crackdown: What’s Next?

Table of Contents

Coingape News Media

Other articles published on May 10, 2024

Bitcoin’s Recent Surge: Key Market Insights

MicroStrategy Bitcoin Holdings Soared In Q1 Despite A Revenue Slump

Bitcoin Value Dips Cause Crypto Exchange Trading Volumes to Fall for First Time in Over Half a Year

US-based Spot Bitcoin ETFs Draw $112M From Hong Kong Asset Managers

TikTok Introduces Labels for AI-Generated Content

Best Crypto Presale of 2024, Memereum Overtakes Avax: The New Leader in DeFi Innovation

Join our free newsletter for daily crypto updates!