CFTC’s Last Stand Against Crypto? Subpoena to Coinbase Signals Final Push Before Trump Era Begins
The post CFTC’s Last Stand Against Crypto? Subpoena to Coinbase Signals Final Push Before Trump Era Begins appeared on BitcoinEthereumNews.com.
Coinbase is facing increased scrutiny from the Commodity Futures Trading Commission (CFTC) in connection with its involvement with Polymarket, a crypto-based prediction market platform. On January 8, 2025, the exchange informed its customers that it had received a subpoena from the CFTC, which is examining the platform’s operations. CFTC Issues Final Crypto Blow According to an X post by EthHub co-founder Eric Conner, the subpoena seeks general customer information related to their involvement with Polymarket. Coinbase, however, clarified in its email that no immediate action is required from users but noted that it could be obligated to provide specific account details unless a legal motion is filed to block the request before January 15, 2025. This action comes amidst a crackdown on decentralized betting platforms, with the CFTC considering Polymarket’s operations similar to gambling, raising questions about regulatory adherence. These developments also come on the heels of a tumultuous period for Polymarket. FBI agents raided Polymarket CEO Shayne Coplan’s Manhattan apartment on November 13, following the platform’s accurate prediction of Donald Trump’s election victory. Sources claimed the raid was politically motivated, with Coplan himself criticizing the move as a “last-ditch” effort to target political opponents. Polymarket, previously fined by the CFTC, also faces regulatory scrutiny over alleged market manipulation. Despite Polymarket’s move to block US users following a 2022 settlement with the CFTC, some users have reportedly bypassed these restrictions using VPNs, leading to further concerns over potential market manipulation and illicit betting. Meanwhile, the latest subpoena to Coinbase marks a significant moment in the ongoing regulatory tension between the US government and the cryptocurrency sector. Under the Biden administration, the CFTC and other regulatory agencies have been making final efforts to tighten oversight of the cryptocurrency industry. This is expected to change once Trump takes over. Trump’s Bold Crypto…
Filed under: News - @ January 9, 2025 8:22 pm