Gemini Kicks Against The CFTC Over Ban On Crypto Prediction Markets

Gemini is opposed to the proposal by the United States Commodity Futures Trading Commission (CFTC), which seeks to ban Polymarket-style crypto prediction markets. 

The crypto-exchange has joined other industry leaders such as Crypto.com, Robinhood, and Coinbase. 

Gemini Against The CFTC Proposal That Wants To Ban Crypto Prediction Markets Like Polymarket

Gemini, the crypto-exchange of the Winklevoss twins, is making its voice heard to express its disappointment regarding the proposal from the Commodity Futures Trading Commission (CFTC) of the USA.

In fact, led by Elizabeth Warren and other democrats, the CFTC is finalizing a rule that could ban crypto prediction markets, in Polymarket style. Specifically, the CFTC’s proposal sees the ban on trading event contracts, defined as follows:

“To bet or risk something of value on the outcome of a political contest, a prize contest, or a game in which one or more athletes compete, or on an event or a non-event in relation to such contest or game”.

In this regard, Gemini wrote a letter to Christopher Kirkpatrick, secretary of the U.S. CFTC, which explains its vision and begins as follows:

“We ask the Commission to withdraw the proposal. We are respectfully convinced that the proposal is contrary to the regulatory framework of the CEA and, as a substantive matter, is contrary to the public interest. The problems with the proposal are numerous, but we focus on the aspect of the proposal that defines ipso facto all event contracts involving “gioco d’azzardo” as contrary to the public interest. In particular, we highlight the negative impact that this rule would have on prediction markets, including prediction markets used for elections.”

Beyond Gemini, other leaders in the crypto and fintech sector such as Crypto.com, Robinhood, and Coinbase, have also declared themselves against the proposal of the CFTC of the USA. 

Gemini vs. CFTC: The Words Of The Co-Founder Of The Crypto-Exchange Winklevoss 

Even Cameron Winklevoss, the co-founder of Gemini, has stepped in to share his opinion and did so through his profile on X, followed by over 724,000 followers. 

Decentralized prediction markets are a significant innovation with real public utility. They provide valuable information on future events that is rooted in financial accountability. Unlike polls, pundits, or expert opinions, they require participants to put their money where… pic.twitter.com/Il9tiEyQqW

— Cameron Winklevoss (@cameron) August 10, 2024

In his long tweet, Winklevoss emphasizes how decentralized prediction markets are a significant innovation, with real public utility. This is expressed through the financial responsibility of providing valuable information about future events. 

In fact, the co-founder of Gemini explains that unlike surveys or opinions, with decentralized prediction markets, people participate by putting “their money where their mouth is.”

Obviously among the most famous crypto prediction markets there is Polymarket, widely cited in every event such as the one concerning the polls of the USA 2024 Presidential elections. 

In this regard, Winklevoss explains that the CFTC cannot make the right decision and that, if it did, it would only be bowing to the pressure of Senator Warren. 

For this reason, the co-founder of Gemini invites the President of the CFTC to distance himself from toxic characters, in order to act independently. 

The Record Volumes Of Polymarket

While US regulation is addressing the issue of decentralized or crypto prediction markets, at the end of July, Polymarket recorded record volumes. 

In fact, the significant milestone of the platform concerns precisely the US presidential elections, with Trump and Harris vying for the White House. 

The record volumes recorded on the crypto prediction market have exceeded 1 billion dollars. An absolute record for Polymarket, which equals more than a third of the cumulative value in the platform’s history.