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Coinbase Urges CFTC to Keep Prediction Markets Under Existing Derivatives Rules

The crypto exchange seeks federal oversight to set one rulebook for event contracts during expanding state gambling cases.

Overview

  • Coinbase filed a formal response to the CFTC’s inquiry on prediction markets, saying the products already fit current law.
  • Chief policy officer Faryar Shirzad argued event-based contracts work like futures and called for a principles-based regime.
  • The company asked the CFTC to explain how it will use its power to block contracts it views as against the public interest.
  • Coinbase said all users should get the same safeguards on and off platforms, which it argued would help keep trust as trading grows.
  • The filing lands as states press gambling actions, including a Wisconsin case, and as the Senate Banking Committee plans a CLARITY Act markup next week.