Crypto prediction markets being challenged by Gemini in a legal battle with CFTC. 💎

Gemini Stands Against CFTC Ban on Crypto Prediction Markets

Gemini, the crypto-exchange founded by the Winklevoss twins, is speaking out against the proposed ban by the United States Commodity Futures Trading Commission (CFTC) on crypto prediction markets. Led by Elizabeth Warren and other democrats, the CFTC is pushing a rule that could outlaw prediction markets similar to Polymarket. Specifically, the proposal aims to prohibit trading event contracts that involve betting on political contests, prize contests, games, or other events.

Gemini expresses disappointment with the CFTC proposal
Rule could ban crypto prediction markets like Polymarket
Definition includes betting on various events

Gemini’s Opposition to CFTC Proposal

Gemini has submitted a letter to Christopher Kirkpatrick, the Secretary of the U.S. CFTC, urging the commission to withdraw the proposal. The exchange believes that the ban on event contracts contradicts regulatory frameworks and is not in the public interest. Gemini highlights the potential negative impact on prediction markets, including those used for elections. Other industry players like Crypto.com, Robinhood, and Coinbase have also voiced their opposition to the CFTC’s plan.

Gemini sends a letter to CFTC expressing concerns
Opposition from other crypto and fintech companies
Highlighting the negative impact on prediction markets

Cameron Winklevoss Speaks Out

Cameron Winklevoss, co-founder of Gemini, has taken to Twitter to share his views on decentralized prediction markets. He believes that these markets offer significant innovation and provide valuable information about future events through financial accountability. Unlike traditional polls or expert opinions, decentralized markets require participants to back their predictions with real money, adding a layer of authenticity.

Winklevoss emphasizes the value of decentralized prediction markets
Participants have to back predictions with real money
Contrasting with traditional polls and opinions

Polymarket’s Record Volumes

Amidst the regulatory discussions, Polymarket, a popular decentralized prediction market platform, recently reported record volumes. The platform saw a surge in activity related to the 2024 US presidential elections, with Trump and Harris being the center of speculation. The volume of trades on Polymarket surpassed $1 billion, a milestone that represents a significant portion of the platform’s total trading history.