CFTC Seeks Data from Coinbase on Polymarket Customers
The U.S. Commodity Futures Trading Commission is pursuing information related to customer interactions with the prediction market platform Polymarket via a subpoena issued to Coinbase.
Key Details:
- The U.S. Commodity Futures Trading Commission (CFTC) is actively pursuing data on customers of the prediction market platform, Polymarket, sending a subpoena to Coinbase.
- Coinbase has warned its customers that it might have to share pertinent information with the CFTC.
Overview
According to a source, the U.S. regulator has requested details regarding users’ interactions with Polymarket through Coinbase. This information is vital for the CFTC as it continues to explore the workings of prediction markets, a move that comes amid a critical transition in agency leadership.
Copies of customer emails indicating this situation have circulated on social media, further corroborating the claims concerning the CFTC's requests.
Coinbase, in response, stated, "When we receive requests for information from a government, each request is carefully reviewed by trained experts using established procedures to determine its legal sufficiency." They further committed to narrowing excessively broad requests whenever possible.
The CFTC recently faced challenges in its legal battles with prediction market firms, exemplified by its initial defeat against Kalshi, which ruled against the regulator's ability to restrict listing election contracts.
With a change in political administration imminent, the agency's leadership is expected to shift, presenting potential opportunities and challenges for regulatory actions related to cryptocurrencies.
