Crypto.com SVP opposes CFTC’s proposed ban on prediction markets and event contracts

Steve Humenik, senior vice president and global head of capital markets and law at Crypto.com, recently wrote to the U.S. CFTC to express his strong opposition to the CFTC's proposed rules that could ban U.S. prediction markets and event contracts. Like Coinbase, Humenik believes that this rule is too prescriptive and exceeds the CFTC's statutory authority. He emphasized that the current CFTC-mandated procedures for reviewing and approving event contracts are sufficient and should not be changed. "We urge (CFTC) not to finalize this proposed rule in writing and consider revoking it entirely," Humenik said. Humenik urged the CFTC to be transparent in its decision-making process and avoid categorically banning all categories of event contracts without a thorough, personalized review. (Bitcoin.com) Earlier, Coinbase Chief Legal Officer Paul Grewal opposed the U.S. Commodity Futures Trading Commission (CFTC)'s proposed rulemaking to ban certain prediction contracts, arguing that it had no sufficient reason. Grewal believes that the proposal has a definition problem, and the broad definition of "gambling" covers the Nobel Prize and the Oscar Award, etc. The definition is also inconsistent with legislative history, evaluates contracts as a category that is not in the public interest, and exceeds the statutory authority of the CFTC. Previously, the U.S. CFTC voted in May to pass a rule that, if finalized, would prohibit betting on political races and other fields. Contracts such as these are not allowed to be listed for trading or clearing through CFTC-registered entities. Earlier this week, Senator Elizabeth Warren urged CFTC Chairman Rostin Behnam to "quickly" finalize the rules prohibiting political event contracts.