Key Takeaways:
- CFTC Subpoenas Coinbase: The U.S. Commodity Futures Trading Commission (CFTC) has reportedly subpoenaed Coinbase for Polymarket customer data, signaling increased regulatory scrutiny of prediction markets.
- Coinbase’s Stance on Data Requests: Coinbase has informed customers of potential data sharing and emphasized its rigorous review of government information requests to ensure appropriateness.
- Leadership Shift at CFTC: This action aligns with ongoing legal battles involving prediction markets and coincides with a leadership transition at the CFTC later this month.
The U.S. Commodity Futures Trading Commission (CFTC) has reportedly issued a subpoena to Coinbase Inc. for customer data related to Polymarket, a prominent prediction market platform.
Coinbase has informed customers of the possibility of sharing their data with regulators, with emails confirming the warnings circulating on social media.
Coinbase Says It Received Subpoena in CFTC’s Polymarket Inquiry: BBG
— Tree News (@News_Of_Alpha) January 10, 2025
The CFTC’s action reflects its increased regulatory scrutiny of prediction markets under Chairman Rostin Behnam, whose tenure ends this month.
Coinbase stated it rigorously reviews government information requests, seeking to narrow overly broad or vague demands, and sometimes objects entirely.
However, it did not confirm receiving the specific subpoena.
This move comes amid ongoing legal battles between the CFTC and prediction market firms, such as Polymarket and Kalshi.
Last year, a federal judge ruled against the CFTC’s attempt to prohibit Kalshi from listing election-related contracts, prompting the agency to file an appeal.
Polymarket maintains that only Congress can regulate election betting.
This regulatory push coincides with a leadership transition at the CFTC, as Chairman Behnam is set to be replaced.
Speculation about his successor includes current commissioners Caroline Pham and Summer Mersinger and former Commissioner Brian Quintenz.
Neither the CFTC nor Polymarket has commented on the subpoena reports.
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