The U.S. Commodity Futures Trading Commission (CFTC) has issued a new subpoena to cryptocurrency exchange Coinbase, only days before President Joe Biden’s term ends. This move is connected to the ongoing investigation by the CFTC into betting markets Polymarket, which necessitates Coinbase to disclose specific details about customers involved in the case.
US CFTC Seeks Coinbase Customers
During the final days of the Biden administration, the Commodity Futures Trading Commission (CFTC) has served a subpoena to cryptocurrency exchange Coinbase as part of the legal action involving Polymarket.
In this context, “cracked a whip” is a metaphorical expression that means taking decisive action or enforcing rules, and “subpoena” is a legal document that requires a person or organization to appear in court or produce documents for an investigation or trial. The Polymarket lawsuit refers to a case involving the CFTC and Polymarket, a platform for prediction markets on political events.
Following a message sent by the exchange regarding it, Eric, one of the authors of Ethereum‘s EIP-1559, made this information available to the general public. He exclaimed, “The shift towards cryptocurrency by the Democrats was quite remarkable!” in his post.
The financial institution has notified its clients via email that they might need to disclose some account details to the U.S. Commodity Futures Trading Commission (CFTC). Yet, it’s important to note that no immediate action is needed on the part of the customers at the present moment.
Biden’s CFTC is subpoenaing customer info from @coinbase in their case against @Polymarket
— eric.eth (@econoar) January 8, 2025
Crypto Exchange Need to Comply Soon
Unless Coinbase receives a request to drop the case or other relevant legal documents by 5:00 PM on January 15, 2025, they will need to fulfill the action in question.
The announcement was made shortly before Rostin Behnam, the CFTC chair, was due to step down, prior to President-elect Donald Trump’s inauguration on January 20. The Trump transition team has been considering at least six possible candidates to head the US CFTC, in line with the president-elect’s promise to create a more crypto-friendly regulatory environment.
Polymarket And Its Regulatory Scrutiny
In simpler terms, Polymarket, a well-known decentralized platform for making predictions, saw a surge in popularity during the 2024 U.S. Presidential Elections. This caught the attention of regulatory bodies like the U.S. Commodity Futures Trading Commission (CFTC). The CFTC then proposed limitations on Polymarket’s operations, classifying these prediction markets as similar to gambling platforms.
While Vice President Kamala Harris had hinted at a shift towards crypto, the Democrats have instead intensified their crackdown on cryptocurrencies as their term nears an end. Coinbase and the Commodity Futures Trading Commission (CFTC) have remained silent on this issue, but the served subpoena signifies another significant event in the ongoing interplay between U.S. regulatory control and the digital currency sector.
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2025-01-09 11:59