The post Coinbase takes on CFTC over ‘Gaming’ rules appeared on BitcoinEthereumNews.com.

Coinbase has raised its objection to the US Commodity Futures Trading Commission’s (CFTC) proposed rules for prediction markets. The largest crypto exchange in the United States argues that the regulations exceed the commission’s statutory authority.  Coinbase’s Chief Legal Officer, Paul Grewal, suggests that the proposal could statutorily ban certain types of event contracts by adopting a broad definition of “gaming.” He urged the CFTC to withdraw the proposal and take up an approach in line with the CEA. Coinbase challenges the CFTC’s authority We urge the CFTC to withdraw this proposal and work alongside academic, industry, and policy stakeholders to develop a more balanced approach that promotes innovation while protecting the public interest. As always, we appreciate the CFTC’s consideration of our response and look… — paulgrewal.eth (@iampaulgrewal) August 9, 2024 Paul Grewal responded to the CFTC’s proposed rulemaking on prediction markets. He highlighted the potential of event markets in the future economy. He expressed complete support of Coinbase in the commission’s mission to uphold the integrity of the derivatives market. He suggested that a robust regulatory framework could be provided for such an emerging class of contracts. He also noted that the enactment of this proposal will ban many prediction contracts without good reason. Grewal simplified the issue by pointing out that the proposal has a definition problem. The CFTC’s proposal gives a broad definition of “gaming” including contracts like Nobel Prizes and the Oscars, which are clearly not forms of gaming. The letter mentions that professional awards such as Nobel Prizes or Academy Awards are granted through a process that should generally qualify as games. However, these are examples presented that constitute a definition in the proposal. He added that this definition of “gaming” is also inconsistent with legislative history. It has created confusion with existing state laws…

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Filed under: News - @ August 9, 2024 12:14 pm