Gemini’s co-founder argued that platforms like Polymarket which offer unmatched transparency and integrity.
The cryptocurrency exchange Gemini has withdrawn a proposed legislation that, if approved would prohibit all event contracts on decentralized prediction markets and has requested its return to US regulators.
Gemini noted in a letter to Christopher Kirkpatrick, the secretary of the United States Commodity Futures Trading Commission (CFTC), on August 8, “We highlight the adverse impact that this rule would have on prediction markets, including prediction markets used to forecast elections.
Gemini CEO claims these platforms offer more integrity
“Cameron Winklevoss, the co-founder of Gemini, made further remarks on social media about why he thinks cryptocurrency prediction platforms like Polymarket are crucial.
He specifically mentioned the transparency that these platforms provide to their consumers. Winklevoss said in a post on August 9 that the Commodity Futures Trading Commission (CFTC) should remove its proposed rule on event contracts.
The proposed rule would firmly prohibit all event contracts in the United States, including those traded on Polymarket, the world’s largest prediction market.
Winklevoss asserts that these platforms necessitate participants to invest their own money to be actively involved in the process. This is in contrast to polls, pundits, or expert opinions, which do not require participants to do so. Platforms like Polymarket implement a proof-of-stake requirement that gives them a level of integrity unmatched by other platforms, he noted.
Furthermore, Coinbase voiced their opposition to the proposed regulation. President and Chief Legal Officer of Coinbase, Paul Grewal, remarked that “the proposal fails to recognize the public benefits of prediction markets.”
“We urge the Commodity Futures Trading Commission (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 said.
US politicians say betting may interfere with election
Five senators and three representatives from the United States reiterated their call for the Commodity Futures Trading Commission (CFTC) to prohibit betting on the presidential election of 2024.
In a letter that they sent to Rostin Benham, the Chair of the Commodity Futures Trading Commission (CFTC), on August 5, they asserted that such markets “could influence and interfere with elections and further erode public trust in democracy.”
It was reported on July 17 that the feverish speculation surrounding the US presidential election has driven Polymarket’s volumes to record levels. To be more specific, the first two weeks of July registered more volume than any other month in the company’s history.
According to Dune Analytics’ findings, Polymarket experienced a volume of $387.03 million in July, surpassing the volume of $111.5 million that it had experienced in June, which was its previous highest month.
