The Winklevoss twins, founders of Gemini cryptocurrency exchange, are calling out the Commodity Futures Trading Commission (CFTC) for proposing a new rule that would ban event contracts, also known as prediction markets.
CFTC’s Proposed Rule: A “Blanket Ban”
Tyler Winklevoss argues that the CFTC’s proposed rule would unfairly deny Americans access to these markets, which allow people to bet on the outcome of events like elections, sporting events, or other developments. He specifically mentions Polymarket, a popular prediction market platform, and calls for the CFTC to withdraw the proposed rule.
Prediction Markets: “Valuable Information”
Cameron Winklevoss emphasizes the importance of decentralized prediction markets, stating that they provide valuable information about future events, grounded in financial accountability. He believes the CFTC’s proposal is misguided and will be overturned by the courts.
Supreme Court Ruling: A Legal Challenge
The Winklevoss twins point to a recent Supreme Court ruling that limits the CFTC’s power to expand its authority through rulemaking. They argue that the proposed rule would be an overreach of power and will likely be struck down by the courts.
CFTC’s Justification: Protecting the Public
The CFTC claims that the proposed rule is intended to protect the public by clarifying which contracts fall under the Commodity Exchange Act (CEA). The CFTC specifically targets event contracts related to “gaming,” including bets on political contests, awards, and sporting events.
Winklevoss Twins: A Strong Opposition
The Winklevoss twins are firmly against the CFTC’s proposed rule, arguing that it would stifle innovation and limit access to valuable information. They believe the rule is unnecessary and will ultimately be deemed illegal.
