Robinhood, Coinbase, and others oppose CFTC regulation of political prediction markets

A proposed rule change by the US Commodity Futures Trading Commission (CFTC) that could threaten the operation of fast-growing political prediction markets such as Polymarket in the US has sparked a backlash from cryptocurrency and fintech companies, including Gemini, Crypto.com, Robinhood, Coinbase, and individuals such as prominent blogger Scott Alexander.
Industry insiders believe that the CFTC's proposal exceeds its own regulatory authority. Steve Humenik, senior vice president of Crypto.com, said that the CFTC is neither a gambling regulator nor an election regulator, and is not qualified to regulate this market. Dragonfly Capital's legal counsel argued that the Supreme Court overturned Chevron's law, which means that the CFTC must ensure that it has the authority to regulate these contracts. Cameron Winklevoss, one of Gemini's founders, called on the CFTC to withdraw the proposal and reformulate it with industry stakeholders. Cryptocurrency companies generally believe that this move by the CFTC will seriously harm the rights of American citizens to access these powerful markets, and called on the CFTC to reconsider its proposal.