Rock

2024

Chair

The U.S. Commodity Futures Trading Commission (CFTC) has intensified its scrutiny of offshore crypto betting platforms, including Polymarket, as they offer derivatives contracts to U.S. customers without proper registration.
CFTC Chair Rostin Behnam emphasized the agency’s focus on ensuring such activities comply with U.S. law, particularly as blockchain-based prediction markets grow in popularity ahead of the 2024 presidential election. “We are closely monitoring offshore activities that provide exposure to U.S. customers,” he <a href="https://www.youtube.com/watch?v=RVSit4Mgtdc" rel="noopener noreferrer nofollow">stated</a> at the Georgetown Psaros Center for Financial Markets and Policy.
<h2 id="span-style-font-weight-400-cftc-chair-s-stance-on-polymarket-span">CFTC Chair’s Stance on Polymarket</h2>
Behnam warned that platforms like Polymarket, which break the law by offering unregistered derivatives contracts, could face enforcement actions. This applies to a range of entities, from exchanges and brokers to clearinghouses, highlighting the CFTC’s broad reach.
Polymarket, a well-known prediction platform, previously settled with the CFTC in January 2022, paying a $1.4 million fine for offering over 900 unregistered event-based binary options markets. The incident set a precedent for the CFTC’s ongoing scrutiny of prediction markets, particularly those tied to political events like the 2024 election.
Over $930 million in bets have been placed on <a href="https://thecoinrise.com/harris-and-trump-now-tied-on-polymarket-after-heated-debate/" rel="noopener noreferrer nofollow">Polymarket’s “Presidential Election Winner 2024” market</a>, while an additional $208 million has been wagered on the “Popular Vote Winner 2024” market.
<h2 id="span-style-font-weight-400-incidents-of-potential-manipulation-span">Incidents of Potential Manipulation</h2>
The growing attention on these markets has raised concerns about potential manipulation. The <a href="https://thecoinrise.com/cftc-warns-of-potential-manipulation-in-prediction-markets-amid-kalshi-case/" rel="noopener noreferrer nofollow">CFTC pointed to recent incidents</a> where prediction markets were exploited, citing an attempted manipulation on Polymarket involving bets on Vice President Kamala Harris winning the 2024 presidential election.
Additionally, a false poll on PredictIt, suggesting that musician Kid Rock was leading Senator Debbie Stabenow in a Michigan Senate race, affected market prices, showing how easily these platforms can be manipulated.
<h2 id="span-style-font-weight-400-kalshi-s-case-span">Kalshi’s Case</h2>
The CFTC’s efforts to regulate prediction markets have also faced legal challenges. In a <a href="https://thecoinrise.com/us-judge-overturns-cftc-ban-allows-kalshi-to-offer-election-betting-contracts/" rel="noopener noreferrer nofollow">recent case against Kalshi</a>, a blockchain-based prediction platform, the court ruled that the CFTC had overstepped its authority by attempting to shut down Kalshi’s presidential election markets.
Despite the partial legal setback, Kalshi’s election markets were suspended again on September 12 after an appeals court issued a stay order. 
The post <a href="https://thecoinrise.com/cftc-targets-offshore-crypto-betting-platforms-like-polymarket/" rel="noopener noreferrer nofollow">CFTC Targets Offshore Crypto Betting Platforms like Polymarket</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

CFTC Targets Offshore Crypto Betting Platforms like Polymarket

Table of Contents

TheCoinrise Media

Other articles published on Sep 18, 2024

Michael Saylor's MicroStrategy to Issue $700M in Senior Convertible Notes to Buy More Bitcoin

Bitgert Price Forecast: A Bullish Look at 2024

Analyst: If You Can’t Beat Them, Join Them Moment Is Coming for XRP

Wintermute keeps buying up all Neiro on Ethereum (NEIRO)

Michael Saylor's MicroStrategy to Issue $700M in Senior Convertible Notes to Buy More Bitcoin

This altcoin’s rise signals a new era and is poised to overtake XRP and Solana

Join our free newsletter for daily crypto updates!