US CFTC Issues Subpoena to Coinbase In Polymarket Case, What’s Happening?
Highlights
- US CFTC has issued a subpoena to Coinbase asking them to furnish customer information by Jan 15.
- Coinbase has assured users no immediate action is required on their part.
- The crackdown comes just days before Joe Biden steps down as US President.
The U.S. Commodity Futures Trading Commission (CFTC) has issued a fresh subpoena to crypto exchange Coinbase just days ahead of President Joe Biden leaving office. This comes as part of the US CFTC’s ongoing investigation into betting markets Polymarket thereby requiring Coinbase to provide specific information regarding customers involved in the case.
US CFTC Seeks Coinbase Customers
Under the outgoing Biden administration, the CFTC has cracked a whip issuing a subpoena to crypto exchange Coinbase in the Polymarket lawsuit.
After receiving an email for the same from the exchange, Eric, co-author of Ethereum’s EIP-1559, shared this information in the public domain. “The dems crypto pivot truly was something else!” he wrote.
The exchange informed its customers through email that it may be required to share account-related information with the US CFTC. However, the company noted that no action is required from customers at this time.
Biden's CFTC is subpoenaing customer info from @coinbase in their case against @Polymarket pic.twitter.com/YlCdUPwHs7
— eric.eth (@econoar) January 8, 2025
Crypto Exchange Need to Comply Soon
The action comes with a deadline, unless Coinbase receives a motion to dismiss or other legal documentation by the close of business on January 15, 2025, the company will be required to comply.
The announcement comes just ahead of the CFTC chair Rostin Behnam stepping down before President-elect Donald Trump takes oath on January 20. The Trump transition team has reviewed at least six potential candidates to lead the US CFTC, aligning with the president-elect’s pledge to establish a more crypto-friendly regulatory framework.
Polymarket And Its Regulatory Scrutiny
Polymarket, a decentralized prediction market platform, gained huge popularity during the US Presidential Elections in 2024 drawing attention from regulators like the US CFTC. The regulator demanded limiting the operation of the prediction market while labeling them as gambling platforms.
Unlike the promises by Vice President Kamala Harris of a crypto pivot, the Democrats have continued with the crypto crackdown even in their last days in office. Coinbase and the CFTC have yet to comment publicly on the matter, but the subpoena marks another pivotal moment in the intersection of U.S. regulatory oversight and the cryptocurrency industry.
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