The Commodity Futures Trading Commission (CFTC) has granted regulatory leeway to prediction markets, impacting platforms like Polymarket and Gemini, enabling them to conduct U.S. operations legally.
This regulatory move aims to enhance U.S. access to crypto trading, with potential boosts in market activity and investor interest, as observed in Gemini’s stock surge.
Polymarket, Gemini Secure CFTC Approval for U.S. Operations
The Commodity Futures Trading Commission (CFTC) has approved Polymarket and Gemini for U.S. prediction markets. This decision grants them leeway in data and record-keeping rules, marking a crucial shift in regulatory approaches. CFTC Press Release: New initiatives and actions outlined.
Polymarket, known for crypto-based trading, received an amended order, allowing U.S. access via CFTC-registered futures commission merchants. Gemini obtained a Designated Contract Market license, enabling the launch of supervised markets. CFTC publishes guidelines for prediction markets and trading practices.
U.S. Trading Options Expand with CFTC’s New Licenses
Polymarket and Gemini’s approvals are expected to enhance the scope of U.S. trading options. The deals are part of broader efforts by acting CFTC Chair Caroline Pham to modernize regulations and promote digital asset markets. As Caroline D. Pham, CFTC Acting Chairman, stated,
“Eliminating outdated and overly complex guidance that penalizes the crypto industry and stifles innovation is exactly what the Administration has set out to do this year.”
Experts anticipate financial and regulatory transformations, noting the introduction of BTC, ETH, and USDC as collateral in regulated markets. The initiatives are likely to stimulate 24/7 trading and could lead to increased market participation. CFTC Press Releases collection for current updates and announcements.
CFTC’s Progressive Stance Reflects New Regulatory Era
These actions mirror past initiatives like Bitnomial’s pilot for crypto collateral and overseen trading expansions. The CFTC’s approach aligns with the GENIUS Act, and its withdrawal of the 2020 “actual delivery” guidance suggests a progressive regulatory stance. CFTC Press Release: New measures to regulate digital assets proposed.
Industry leaders see the CFTC’s moves as pivotal. Regulatory clarity is expected to stimulate growth in tokenized digital assets, with Heath Tarbert highlighting the global interoperability advantages of a stablecoin-friendly market. Heath Tarbert, President of Circle, noted,
“Deploying prudentially supervised payment stablecoins across CFTC-regulated markets protects customers, reduces settlement frictions, supports 24/7 risk reduction, and advances U.S. dollar leadership through global regulatory interoperability.”
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