The US CFTC has issued a subpoena to the Coinbase exchange, requesting that it provide client information related to the Polymarket case.
The US Commodity Futures Trading Commission (CFTC) has issued a new subpoena to Coinbase, a cryptocurrency exchange, mere days before President Joe Biden departs office. This is a component of the US CFTC’s ongoing investigation into betting markets Polymarket, which necessitates that Coinbase furnish specific information regarding consumers implicated in the case.
US CFTC Investigates Coinbase Customers
The CFTC has issued a subpoena to Coinbase, a crypto exchange, in the Polymarket lawsuit during the term of the outgoing Biden administration.
Eric, a co-author of Ethereum’s EIP-1559, disclosed this information to the public after receiving an email from the exchange. “The crypto pivot by the Democrats was extraordinary!” he wrote.
The exchange emailed its consumers that it may be obligated to disclose account-related information to the US CFTC. Nevertheless, the organization acknowledged that consumers are not required to take any action at this time.
Cryptocurrency exchanges must comply with regulations shortly
The action is subject to a deadline; if Coinbase does not receive a motion to dismiss or other legal documentation by the close of business on January 15, 2025, the company will be obligated to comply.
Rostin Behnam, the current chief of the Consumer Financial Protection Bureau (CFPB), will resign shortly before President-elect Donald Trump assumes office on January 20. The Trump transition team has evaluated at least six potential candidates to lead the US CFTC based on the president-elect’s commitment to create a more conducive regulatory framework for cryptocurrency.
Polymarket and Its Regulatory Scrutiny
Polymarket, a decentralized prediction market platform, became extremely popular during the 2024 US Presidential Elections, attracting the attention of regulators such as the US CFTC. The regulator requested that the prediction market be restricted in its operations and classified as a gambling platform.
In contrast to the assurances made by Vice President Kamala Harris regarding a crypto pivot, the Democrats have maintained their crypto repression throughout their tenure. However, the subpoena represents another critical juncture between the cryptocurrency industry and US regulatory supervision. Coinbase and the CFTC have yet to provide public commentary on the matter.
