Dragonfly opposes CFTC's proposed ban on political prediction markets

BlockBeats news, on August 12, according to CoinDesk, Jessica Furr from Dragonfly Digital Management and advisor Bryan Edelman wrote to the U.S. Commodity Futures Trading Commission (CFTC) stating: "Political event contracts should not be equated with gambling activities such as the Super Bowl. Elections have significant economic impacts, and these contracts are designed to provide key risk hedging functions that comply with the requirements of the Commodity Exchange Act (CEA), and provide valuable predictive data for the public."

Previously reported by BlockBeats, a proposed rule change by the U.S. Commodity Futures Trading Commission (CFTC) could threaten the operations of rapidly growing political prediction markets like Polymarket in the United States, sparking strong opposition from cryptocurrency and fintech companies. The dissenting voices come from companies such as Gemini, Crypto.com, Robinhood, Coinbase as well as individuals like renowned blogger Scott Alexander. Industry insiders believe that this proposal by CFTC oversteps its regulatory authority. Steve Humenik, Senior Vice President of Crypto.com stated that CFTC is "neither a gambling regulator nor an election regulator and has no qualifications to regulate this market."