YEREVAN (CoinChapter.com) — Cryptocurrency alternate Gemini has urged U.S. regulators to rethink a proposed rule from the Commodity Futures Trading Fee (CFTC) that might ban occasion contracts on decentralized prediction markets like Polymarket.

These platforms enable customers to foretell the outcomes of occasions comparable to elections. In an Aug. 8 letter to CFTC Secretary Christopher Kirkpatrick, Gemini expressed considerations that the regulation might negatively impression these markets, notably these associated to elections. The alternate highlighted that decentralized prediction markets supply priceless transparency and reliability in forecasting, typically outperforming conventional polling strategies.

Winklevoss Highlights Integrity of Crypto Prediction Markets

Cameron Winklevoss, co-founder of Gemini, expressed his considerations on social media. On Aug. 9, he posted on X, stating that platforms like Polymarket present a degree of integrity that’s unmatched by different strategies. He additional emphasised that contributors in these markets have “skin in the game,” making the predictions extra correct.

Winklevoss urged the CFTC to rethink its stance on the rule, noting that the transparency and proof-of-stake necessities on these platforms assist keep belief and integrity within the prediction course of.

Coinbase Urges CFTC to Think about Public Advantages in Regulation

Different main gamers within the crypto trade share Gemini’s opposition. Coinbase, one other cryptocurrency alternate, additionally raised objections to the CFTC’s proposal. Paul Grewal, Coinbase’s Chief Authorized Officer, identified that the proposed rule fails to acknowledge the general public advantages supplied by prediction markets.

Grewal urged that the CFTC ought to work with stakeholders from academia, trade, and coverage to create a extra balanced regulatory method. He believes this collaboration might shield the general public curiosity whereas permitting for continued innovation.

Lawmakers Urge CFTC to Ban Election Betting as Polymarket Trading Surges

The talk over the proposed rule follows considerations from U.S. lawmakers concerning the potential impression of prediction markets on elections. On Aug. 5, 5 U.S. Senators and three Home representatives referred to as on the CFTC to ban betting on the 2024 presidential election.

In a letter to CFTC Chair Rostin Benham, the lawmakers argued that prediction markets might affect election outcomes and undermine public belief in democracy. Their considerations are well timed, as buying and selling volumes on Polymarket have surged resulting from hypothesis surrounding the upcoming election.

Knowledge from Dune Analytics exhibits that Polymarket recorded $387.03 million in buying and selling quantity in July, considerably surpassing its earlier peak of $111.5 million in June. This enhance highlights the rising curiosity in election-related prediction markets.