Vitalik Buterin Defends Polymarket as CFTC Targets Prediction Platforms

Other crypto powerhouses, in addition to Buterin, have also criticized the CFTC’s assertions. For instance, Gemini has contested these regulations, arguing that they distort the goals of the Commodity Exchange Act (CEA) and go against public interest. Cameron Winklevoss, Gemini’s co-founder, stressed that decentralized prediction markets provide valuable forecasts for future events, praising their genuine public utility.

“Decentralized prediction markets are a significant innovation with real public utility. They provide valuable information on future events rooted in financial accountability. Unlike polls, pundits, or expert opinions, they require participants to put their money where their mouth is — to have skin in the game. This proof-of-stake requirement gives them an integrity that other information sources cannot claim,” Winklevoss noted.

Similarly, Coinbase has pushed back against the proposal, with the exchange’s Chief Legal Officer, Paul Grewal, highlighting concerns over the ambiguous definition of “gaming.”

On the other hand, Opinion Labs sheds light on why the Polymarket prediction market could be mistakenly categorized as a gambling platform. The firm points out that Polymarket isn’t “fully decentralized or permissionless,” noting that several projects using the term “prediction market” essentially function as casinos.

Polymarket Records Soaring Popularity Amid US Election Buzz

Despite the CFTC’s scrutiny potentially acting as a roadblock and bringing decentralized prediction markets under its radar, Polymarket continues to see increased participation, fueled in part by the excitement surrounding the US elections and ongoing campaigns.

Participants are betting on various potential outcomes in the presidential race, where Donald Trump and Kamala Harris are currently tied at 50%. In the Senate predictions, Republicans hold a strong lead, with 71% compared to the Democrats’ 29%.

US Election Outcome Bets. Source: Polymarket

Amid this surge of activity, Dune Analytics reports that Polymarket’s monthly trading volume climbed to over $390 million in August, surpassing July’s $387 million. The platform also hit a record number of monthly active traders, reaching 53,981 users, up from 44,523 the previous month.

Daily volume and active trader metrics show consistent growth, largely driven by election-related interest