CFTC Issues Subpoena to Coinbase Amid Polymarket Investigation, Days Before Biden’s Exit
The U.S. Commodity Futures Trading Commission (CFTC) has issued a fresh subpoena to cryptocurrency exchange Coinbase as part of its ongoing investigation into the decentralized betting platform, Polymarket. The subpoena, which arrives just days before President Joe Biden leaves office, demands specific customer information from Coinbase related to the Polymarket case.
CFTC Targets Coinbase Customers in Polymarket Probe
Under the Biden administration, the CFTC has intensified its scrutiny of cryptocurrency platforms, with the latest move targeting Coinbase in connection with the Polymarket lawsuit. The subpoena highlights the regulatory body’s continued focus on prediction markets, which it has previously characterized as unlicensed gambling platforms.
Eric, co-author of Ethereum’s EIP-1559 proposal, brought the subpoena to light after receiving an email from Coinbase regarding the matter. He publicly shared the information, remarking on the Democrats’ shifting stance toward crypto regulation: “The dems crypto pivot truly was something else!”
In its communication to customers, Coinbase confirmed it may be obligated to share account-related information with the CFTC. However, the exchange assured its users that no immediate action is required on their part.
Compliance Deadline Looms for Coinbase
The CFTC has set a deadline for Coinbase’s compliance unless a motion to dismiss or other legal action is filed before the end of business on January 15, 2025. Without such action, Coinbase will be required to provide the requested information.
This development comes as CFTC Chair Rostin Behnam prepares to step down ahead of President-elect Donald Trump’s inauguration on January 20. The incoming administration has reportedly reviewed several candidates to lead the CFTC, signaling a potential shift toward a more crypto-friendly regulatory approach.
Polymarket’s Ongoing Regulatory Challenges
Polymarket, a decentralized prediction market platform, rose to prominence during the 2024 U.S. Presidential Election, drawing significant attention from regulators. The CFTC has pushed for limitations on Polymarket’s operations, labeling its services as gambling under current U.S. laws.
Despite Vice President Kamala Harris’s earlier promises of a more favorable stance toward crypto, the Biden administration has maintained its regulatory crackdown on the industry in its final days. While both Coinbase and the CFTC have yet to issue public statements on the subpoena, the move underscores the continuing tensions between U.S. regulators and the cryptocurrency sector.
This latest action serves as another critical moment in the evolving relationship between the crypto industry and U.S. regulatory oversight, with more changes expected as the Trump administration takes office.
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