Coinbase and the CFTC might be at loggerheads amid issued subpoena in Polymarket probe.
By Godfrey Benjamin
Edited by Julia Sakovich
Updated
3 mins read
In a surprising twist, the Commodity Futures Trading Commission (CFTC) has issued a fresh subpoena to prominent crypto exchange Coinbase Global Inc (NASDAQ: COIN). This comes just days before President Joe Biden’s administration wraps up.
The subpoena seeks customer information tied to the ongoing investigation into Polymarket, a decentralized prediction market platform. This unexpected move underscores the Biden administration’s tough stance on crypto, even as its tenure winds down.
Polymarket gained significant traction during the 2024 US Presidential Elections, attracting attention for its unique betting-style operations. Its popularity, however, drew the crackdowns from regulators.
The CFTC has classified such platforms as gambling services, arguing they operate outside legal boundaries. However, major industry leaders, including Ethereum co-founder Vitalik Buterin, have rebelled against this view.
Now, Coinbase finds itself entangled in the investigation. The exchange emailed users that it may have to share account-related data with the CFTC.
Unless a legal motion blocks the action by January 15, 2025. Despite the looming deadline, Coinbase reassured customers that no immediate action was required from their end. However, the timing of this subpoena raises eyebrows.
The subpoena did not stay private for long. In a recent X post, Eric.eth, co-author of Ethereum’s EIP-1559, publicly shared the news. Eric’s comment highlighted the disappointment many feel about the Democrats’ approach to crypto.
Biden's CFTC is subpoenaing customer info from @coinbase in their case against @Polymarket pic.twitter.com/YlCdUPwHs7
— eric.eth (@econoar) January 8, 2025
After hinting at friendlier policies, they reversed course and intensified regulatory crackdowns. This shift left the community feeling betrayed. Under Biden, promises of balanced crypto regulation turned into crackdowns, leaving industry leaders wary of what’s next.
This latest regulatory move comes as CFTC Chair Rostin Behnam prepares to step down. His departure paves the way for new leadership under President-elect Donald Trump. Trump is known for promoting a crypto-friendly regulatory environment.
He has already hinted at plans to revamp how digital assets are governed in the US. His transition team is reportedly vetting candidates to lead the CFTC, focusing on fostering innovation rather than enforcement.
Speculatively, the policies surrounding betting platforms like Polymarket might change significantly under Trump’s incoming administration. Meanwhile, the subpoena issued against Coinbase highlights a deeper struggle in US crypto policy: balancing innovation with oversight.
This regulatory push represents the outgoing administration’s final effort to control an industry often called the Wild West of finance. With January 20 approaching, the industry wonders if Trump’s crypto revolution will become a reality.
Many fear it could just continue the ongoing regulatory drama. As the dust settles on Biden’s term, one thing is clear: the fight for the future of crypto in America is far from over.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
