Gemini co-founders Tyler and Cameron Winklevoss are blasting the Commodity Futures Trading Commission (CFTC) for proposing a new rule against event contracts.
In a new thread on the social media platform X, Tyler Winklevoss says that the regulatory body should retract its new proposed guidelines as it would deny US citizens access to event contracts, or futures contracts that offer “yes” or “no” options for outcomes of events such as elections, games or developments.
“The CFTC should withdraw its proposed rule on event contracts, which would categorically ban all event contracts in the US, like those traded on Polymarket, the world’s largest prediction market. Americans should not be denied access to these powerful markets.”
According to Cameron Winklevoss, decentralized prediction markets are important as they “provide valuable information on future events that is rooted in financial accountability.” The billionaire goes on to say that the CFTC’s proposed rule will be struck down in court due to the latest Supreme Court ruling.
“There is nothing thoughtful about a blanket ban on markets that have been employed for decades in one form or another and have proven extremely reliable tools for forecasting future events…
This proposed rule, if adopted, will be struck down by the courts. The recent Supreme Court ruling in Loper Bright Enterprises v. Raimondo makes it clear that regulatory agencies cannot expand their power through rulemaking, which is exactly what this proposed rule would be doing.”
In a recent press release, the CFTC says it proposed the change to specify the types of contracts that fall under the Commodity Exchange Act (CEA) as a means of protecting the public’s interest. The proposal scrutinizes event contracts involving “gaming” as activities considered unlawful under federal or state law.
According to the CFTC, gaming covers event contracts that bet on the outcome of a political contest, award contest and athletic competition.
Generated Image: DALLE3