Gemini co-founders Tyler and Cameron Winklevoss are vocally opposing a new proposed rule from the Commodity Futures Trading Commission (CFTC) that aims to ban event contracts in the U.S. In a recent series of posts on the social media platform X, Tyler Winklevoss argued that the CFTC’s guidelines would restrict U.S. citizens’ access to event contracts, which are futures contracts offering “yes” or “no” options on various outcomes, including elections, sports events, and other significant occurrences.
Winklevoss Twins; Coinbase Criticize CFTC’s Event Contracts Banhttps://t.co/HDltLHMDf4
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Tyler Winklevoss criticized the proposal, stating, “The CFTC should withdraw its proposed rule on event contracts, which would categorically ban all event contracts in the U.S., such as those traded on Polymarket, the world’s largest prediction market. Americans should not be denied access to these powerful markets.”
Cameron Winklevoss also voiced strong opposition, emphasizing the importance of decentralized prediction markets for providing valuable, financially accountable information on future events. He predicted that the CFTC’s proposed rule would be overturned in court, citing the recent Supreme Court decision in Loper Bright Enterprises v. Raimondo. This ruling, he argued, clarifies that regulatory agencies cannot extend their authority through rulemaking, a concern he sees reflected in the CFTC’s proposed rule.
Cameron Winklevoss contended, “There is nothing thoughtful about a blanket ban on markets that have been used for decades in various forms and have proven to be extremely reliable tools for forecasting future events. This proposed rule, if adopted, will be struck down by the courts.”
Crypto news
Winklevoss Twins Join Coinbase in Criticizing
CFTC’s Event Contracts Ban#Gemini and #Coinbase are asking CFTC to rescind its Proposed Guide to Event Contracts, stating that the impacts of it could harm prediction pic.twitter.com/qDOWlxSQdZ— CRYPTO NEWS (@cryptnewsmedia) August 11, 2024
The CFTC, in a recent press release, explained that the proposed change aims to clarify which types of contracts fall under the Commodity Exchange Act (CEA) to better protect public interest. The proposal scrutinizes event contracts related to “gaming,” categorizing them as unlawful under federal or state law. This includes contracts that bet on the outcomes of political contests, award contests, and athletic competitions.
Key Points:
i. Tyler and Cameron Winklevoss criticize the CFTC’s proposed rule to ban event contracts, claiming it restricts U.S. citizens’ access to these markets.
ii. Tyler Winklevoss argues that the rule would unjustly limit participation in prediction markets like Polymarket.
iii. Cameron Winklevoss believes the rule will be overturned in court, citing a recent Supreme Court decision that limits regulatory overreach.
iv. The CFTC’s proposal aims to clarify which contracts fall under the Commodity Exchange Act to protect public interest.
v. The rule targets event contracts related to “gaming,” including bets on political, award, and sports outcomes.
Lap Fu Ip – Reprinted with permission of Whatfinger News
