Gemini has received approval from the Commodity Futures Trading Commission to run its own regulated derivatives clearinghouse, a major step that allows the crypto exchange to clear and settle trades in-house. This new authority gives Gemini greater control over its prediction market products and opens the door to perpetual futures trading.
Shares of Gemini surged nearly 8% on the news. Co-founder Cameron Winklevoss described the end-to-end marketplace as “powerful,” telling CNBC it will enable faster operations, better customer experience, and quicker response to market shifts.
The move comes amid a broader industry push into event contracts and derivatives as exchanges seek to reduce reliance on volatile spot crypto trading. Gemini launched event contracts in December after CFTC approval and plans to expand its derivatives lineup.
But the strategy unfolds against a regulatory backdrop. New York Attorney General Letitia James has sued Gemini and Coinbase, arguing prediction markets violate state gambling laws, while the CFTC counters that such markets are federally regulated derivatives.
Despite the approval, Gemini faces investor pressure. Its stock has fallen since its September IPO debut amid a crypto downturn, with scrutiny focused on losses, executive departures, and the company's pivot toward AI and prediction markets. Winklevoss dismissed skeptics, comparing the criticism to early Bitcoin naysayers, and confirmed Gemini plans to add equities trading to diversify revenue streams.