Coinbase urges the CFTC to reconsider its broad definition of "gaming" in proposed prediction market rules, advocating for a contract-by-contract approach instead.
Coinbase has raised concerns over the Commodities Futures Trading Commission’s (CFTC) proposed rules for prediction markets, particularly the broad definition of "gaming." The crypto exchange argues that this definition could unfairly restrict event contracts that offer significant economic value. Instead, Coinbase suggests that the CFTC should evaluate prediction markets on a contract-by-contract basis to better support innovation while ensuring market integrity.
Key Points:
CFTC's Proposed Rules: The CFTC's proposal defines "gaming" as betting on political, athletic, or award outcomes, raising concerns about market integrity.
Coinbase's Argument: Coinbase believes this broad categorization exceeds the CFTC's statutory authority and could harm the economy by stifling valuable prediction markets.
Call for Contract-Specific Regulation: Coinbase advocates for a more nuanced approach, urging the CFTC to assess each event contract individually rather than applying a blanket ban.
Potential Economic Impact: Prediction markets have been shown to efficiently aggregate information, potentially outperforming traditional forecasting methods, which Coinbase argues the CFTC's proposal overlooks.
Public Interest: The exchange stresses the importance of promoting responsible innovation in regulated markets while safeguarding public interest.
Coinbase is calling on the CFTC to withdraw its proposed rules that broadly define "gaming" in prediction markets. The Exchange believes that a contract-by-contract evaluation would better support innovation, economic growth, and market integrity. As prediction markets continue to develop, finding a balanced regulatory approach is crucial for their success and the broader economy.
Source: Coindesk
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