Gemini, a digital currency exchange, has called on US authorities to reassess a proposition that seeks to prohibit event contracts on decentralized prediction markets, namely those related to election predictions.
The exchange highlighted the adverse consequences of this legislation on prediction markets, including those that forecast elections. Cameron Winklevoss, one of the co-founders, highlighted the significance of crypto prediction platforms such as Polymarket, which offer users transparency.
Winklevoss contended that the CFTC should revoke its Proposed Rule regarding event contracts, which would essentially prohibit all event contracts in the United States, including those traded on Polymarket, the largest prediction market globally.
Paul Grewal, the chief legal officer of Coinbase, strongly advised the CFTC to postpone the plan and work together with academia, business, and government to reach a compromise that would promote innovation while ensuring the protection of public interests.
Following the request of five senators and three representatives, there has been a call to ban betting on the 2024 presidential election. The rationale for this demand is the concern that these betting markets have the potential to influence elections and undermine public trust in democracy.
