Winklevoss Twins Urges CFTC to Withdraw Event Contracts Rule

The Winklevoss twins, Tyler and Cameron, have strongly opposed a proposed rule by the U.S. Commodities Futures Trading Commission (CFTC) that could ban prediction markets like Polymarket.

On Saturday, they publicly urged the CFTC to withdraw the rule, labeling it vague and overly broad.

Crypto exchange Gemini, co-founded by the Winklevoss twins, has joined forces with other major players in the crypto industry, including Coinbase, to oppose this regulation.

Gemini argues that the proposed rule contradicts the statutory framework of the Commodity Exchange Act. Cameron Winklevoss revealed that Gemini had submitted a formal letter to the CFTC calling for the rule's withdrawal.

"The CFTC should withdraw its Proposed Rule on event contracts, which would categorically ban all event contracts in the U.S., like those traded on Polymarket. Americans should not be denied access to these powerful markets," said Tyler Winklevoss.

The twins argue that banning event contracts could have significant economic repercussions. They believe the regulator should develop thoughtful regulations and not succumb to political pressure.

They specifically urged the CFTC to disregard Senator Elizabeth Warren's arguments for banning election betting on Polymarket. The twins believe such restrictions would stifle innovation.

Why the Courts Can strike Down the Rule?

The Winklevoss twins also accused Senator Warren and U.S. SEC Chair Gary Gensler of compromising the SEC's integrity.

They urged the CFTC to avoid these influences and focus on what benefits the American people. They emphasized that even if the rule were to be adopted, it could be overturned by the courts.

Citing the recent Supreme Court ruling in Loper Bright Enterprises v. Raimondo, they argued that regulatory agencies cannot expand their powers through rulemaking. The twins believe that the proposed rule exceeds the legal authority granted to the CFTC by Congress.

Gemini has asserted that the CFTC must withdraw the proposed rule to prevent Americans from being denied access to these prediction markets.

Commissioner Summer Mersinger also pointed out that the Proposed Rule "exceeds the legal authority that Congress granted the Commission." This adds another layer of complexity to the ongoing debate.

"The CFTC should withdraw its Proposed Rule on event contracts, which would categorically ban all event contracts in the U.S., like those traded on Polymarket. Americans should not be denied access to these powerful markets," said Tyler Winklevoss.

The twins' strong opposition outlines the proposed rule's broader implications, emphasizing the need for balanced and thoughtful regulation in the rapidly evolving crypto space.