Leading figures in the crypto and fintech sectors, including Crypto.com, Gemini, Robinhood, and influential blogger Scott Alexander, have voiced strong opposition to a proposed rule by the U.S. Commodity Futures Trading Commission (CFTC) that could ban political prediction markets in the United States.
The proposal, supported by Senator Elizabeth Warren and other Democratic lawmakers, seeks to clarify that prohibited “event contracts” include those based on outcomes of political contests, award shows, or sports events. The lawmakers argue that such markets could exacerbate risks to the U.S. electoral system, particularly in light of ongoing concerns about political influence and foreign interference.
In response, industry stakeholders have expressed concerns that the CFTC’s move would restrict access to valuable prediction markets. Cameron Winklevoss, co-founder of Gemini, called for the CFTC to reconsider its stance, emphasizing the need for collaboration with the industry to build trust.
Steve Humenik, SVP at Crypto.com, submitted a comment urging the CFTC not to exceed its regulatory authority. Other notable voices, including Dragonfly Capital’s legal team and Robinhood, echoed these sentiments, highlighting potential legal challenges and the CFTC’s limited jurisdiction over election-related contracts.
The opposition underscores the growing tension between regulatory efforts and the evolving landscape of crypto and fintech, where prediction markets are gaining traction as important financial instruments.
