Coinbase Takes Aim at CFTC's Definition of 'Gaming' in Proposed Prediction Market Rules

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Coinbase argues the definition is vague, and urges the CFTC to make determinations on a contract-by-contract basis rather than broad categorization

Coinbase responded to the CFTC's proposed rules regarding prediction markets, taking aim at how the CFTC proposes to define 'gaming'.

Proposed rules by the Commodities Futures Trading Commission regarding prediction markets should be withdrawn because they exceed the Commission's statutory authority and ignore the positive impact of prediction markets on the economy, Nasdaq-listed crypto exchange "If adopted, the rule would capture contracts as"gaming" that by any common understanding are not, in fact, gaming," Coinbase wrote, arguing that this is inconsistent with"legislative history related to gaming, neither of which suggest that gaming should extend beyond sporting events".

The exchange complained in the letter that the Commission equates speculation with gaming but fails to distinguish between market speculation and actual gambling in its proposal.

 

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