Gemini

United

2024

Rule

Cryptocurrency exchange Gemini has urged United States regulators to withdraw a proposed regulation that, if passed, would ban all event contracts on decentralized prediction markets.
“We highlight the adverse impact that this rule would have on prediction markets, including prediction markets used to forecast elections,” Gemini stated in an Aug. 8 <a href="https://assets.ctfassets.net/jg6lo9a2ukvr/P8JUldW5bCFgVJ87QQ70A/069120ffe6a2ce43a763e8ab65fa8cfd/2024-08-08_-_CFTC_-_Comment_Letter.pdf" target="_blank" rel="noopener nofollow">letter</a> to Christopher Kirkpatrick, the secretary of the US Commodity Futures Trading Commission (CFTC).
<h3 data-ct-non-breakable="true" id="winklevoss-claims-these-platforms-offer-more-integrity">Winklevoss claims these platforms offer more integrity</h3>
Gemini co-founder Cameron Winklevoss made further comments on social media about why he thinks crypto prediction platforms like Polymarket are important, pointing out the transparency they offer users.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/df01597c-afd7-4349-ace3-eea88d6bc7ce.png" alt="Gemini urges CFTC to withdraw proposed rule on event contracts" title="">
 <figcaption style="text-align: center;">
 Gemini claims that prediction markets are not contrary to the public interest. Source: Gemini
 </figcaption>
</figure>
“The CFTC should withdraw its Proposed Rule on event contracts, which would categorically ban all event contracts in the U.S., like those traded on Polymarket, the world’s largest prediction market,” Winklevoss wrote in an Aug. 9 X <a href="https://x.com/cameron/status/1822119376482685020" target="_blank" rel="noopener nofollow">post</a>.
“Unlike polls, pundits, or expert opinions, they require participants to put their money where their mouth is — to have skin in the game,” Winklevoss claimed.
<blockquote data-ct-non-breakable="true">
 “Decentralized prediction markets are a significant innovation with real public utility.”
</blockquote>
He explained that platforms like Polymarket’s proof-of-stake requirement give them a level of integrity that other platforms can’t match.
Crypto exchange Coinbase also raised objections to the proposed rule. Coinbase chief legal officer Paul Grewal <a href="https://x.com/iampaulgrewal/status/1821715850552078761" target="_blank" rel="noopener nofollow">stated</a> that “the proposal fails to recognize the public benefits of prediction markets.”
“We urge the CFTC to withdraw this proposal and work alongside academic, industry, and policy stakeholders to develop a more balanced approach that promotes innovation while protecting the public interest,” Grewal wrote.
<h3 data-ct-non-breakable="true" id="us-politicians-say-betting-may-interfere-with-election">US politicians say betting may interfere with election</h3>
It comes after <a href="https://cointelegraph.com/news/us-senators-call-cftc-ban-election-betting">five US senators and three representatives</a> have renewed calls for the CFTC to ban betting on the 2024 presidential election.
They claimed that such markets “could influence and interfere with elections and further erode public trust in democracy” in an Aug. 5 letter to the CFTC Chair, Rostin Benham.
Related: <a href="https://cointelegraph.com/news/us-presidential-election-now-tossup-polymarket">US Presidential election now a ‘tossup’ — Polymarket</a>
On July 17, Cointelegraph reported that fevered speculation over the US presidential <a href="https://cointelegraph.com/news/us-senators-call-cftc-ban-election-betting">election has driven Polymarket’s volumes</a> to record levels, with more volume recorded in the first two weeks of July than any other month in its history.
<a href="https://dune.com/rchen8/polymarket" target="_blank" rel="noopener nofollow">According</a> to Dune Analytics, Polymarket witnessed $387.03 million in volume in July, surpassing the $111.5 million in volume throughout June, its previous top month.
Magazine: <a href="https://cointelegraph.com/magazine/china-crypto-ban-investors/">How Chinese traders and miners get around China’s crypto ban</a>

Gemini urges CFTC to withdraw proposed rule on event contracts

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