Investigation into Polymarket Continues as Coinbase Receives Subpoena
The Commodity Futures Trading Commission (CFTC) has issued a subpoena to Coinbase, a US-based international exchange, as part of an ongoing investigation into Polymarket, a cryptocurrency-based prediction and betting platform.
Coinbase Notifies Users of Ongoing Investigation
Coinbase has informed its users about the subpoena through an email, stating that the CFTC has requested general customer information, including account-related data. The exchange has assured its users that it will try to limit requests that are too broad or vague and may object to providing information if the request is legally insufficient.
CFTC’s Investigation into Polymarket
The CFTC’s investigation into Polymarket comes as Rostin Behnam, the agency’s president, prepares to leave his position. During his administration, Behnam has emphasized the importance of regulating cryptocurrency-based prediction and betting markets. The agency has previously taken action against similar platforms, including Kalshi, and has expressed concerns about betting platforms that take advantage of electoral contests in the US.
Polymarket’s History with the CFTC
Polymarket stopped operating in the US years ago due to disputes with the CFTC. However, the platform has recently come under scrutiny again after a contract signed by the US presidency moved over $2 billion in bets. The CFTC’s investigation into Polymarket raises questions about the agency’s future approach to regulating cryptocurrency-based prediction and betting markets.
Uncertainty Surrounds the Investigation’s Future
With Behnam’s departure from the CFTC, it is unclear whether the investigation into Polymarket will continue. The agency’s future approach to regulating cryptocurrency-based prediction and betting markets may depend on the perspective of the new director, who may be more open to the crypto sector.