The Commodity Futures Trading Commission (CFTC) is investigating Polymarket, a platform for betting on future events using cryptocurrency, and has subpoenaed Coinbase for customer information.
Coinbase Receives Subpoena
An email reportedly sent by Coinbase to its customers revealed the CFTC’s request for general user data related to its Polymarket investigation. Polymarket lets users bet on events using USDC, a stablecoin pegged to the US dollar.
Polymarket’s Controversial Past
Polymarket gained popularity during the 2020 US presidential election, accurately predicting Donald Trump’s victory. However, the platform has faced legal trouble. The FBI raided the home of Polymarket CEO Shayne Coplan following allegations of violating a previous settlement with the CFTC regarding US user access. Coplan claims the actions are politically motivated. He suggests a more business-friendly approach from regulators might have been beneficial.
Coplan’s Response
Coplan argues that the regulatory actions against Polymarket are politically driven and suggests a more supportive regulatory environment for startups.
