Coinbase dey beg CFTC make dem keep prediction markets under federal control

Coinbase don drop one formal comment letter give the U.S. Commodity Futures Trading Commission (CFTC). Dem talk say prediction markets suppose still dey under federal derivatives watchdog, no be make every state dey control am. Faryar Shirzad wey be Coinbase policy oga talk say event-based contracts na derivatives and say Congress set federal power make dem avoid “regulatory conflict” for markets wey dey cross state borders. Coinbase still complain how dem dey use CFTC Rule 40.11. Dem talk say people dey treat the rule like total ban, but law talk say na two-step test: first, whether the contract fall into listed categories (like terrorism, assassination, gambling), second, whether the particular contract go against public interest. Coinbase want make the rule text clear and want updated guidance from exchanges on how platforms fit show say contracts no easy to manipulate. The filing come as prediction markets dey face more legal wahala. New York attorney general sue Coinbase on April 22. Coinbase also challenge state actions for Illinois, Michigan, and Connecticut in December 2025, where dem use gambling law enforcement to cut down similar offerings. Coinbase still mention one Federal Reserve staff paper wey show prediction markets fit match or do pass established forecasting benchmarks, including New York Fed survey data. For traders, the main takeaway be say clearer, uniform CFTC framework for prediction markets fit reduce policy-driven uncertainty and fragmentation risk—fit also calm volatility wey dey follow regulatory headlines.