CFTC’s Last Battle Against Crypto? Quote on Coinbase Signals Final Push Before Trump Era Begins

Coinbase is facing increased scrutiny from the Commodity Futures Trading Commission (CFTC) over its involvement with Polymarket, a crypto-based prediction market platform.

On January 8, 2025, the exchange informed its customers that it had received a subpoena from the CFTC, which is examining the platform’s operations.

CFTC issues final crackdown on crypto

According to an X post by EthHub co-founder Eric Conner, the subpoena seeks general customer information related to its involvement with Polymarket. Coinbase, however, clarified in its email that no immediate action is required from users, but noted that it may be required to provide specific account details unless a legal motion is filed to block the request by 15 January 2025.

The action comes amid a crackdown on decentralized betting platforms, with the CFTC considering Polymarket’s operations similar to gambling, raising questions about regulatory compliance.

These developments also come after a tumultuous period for Polymarket. FBI agents raided the Manhattan apartment of Polymarket CEO Shayne Coplan on November 13, following the platform’s accurate prediction of Donald Trump’s election victory. Sources claimed the attack was politically motivated, and Coplan himself criticized the move as a “last ditch effort” to target political opponents. Polymarket, previously fined by the CFTC, also faces regulatory scrutiny for alleged market manipulation.

Despite Polymarket’s decision to block US users following a 2022 settlement with the CFTC, some users have bypassed these restrictions using VPNs, raising further concerns about potential market manipulation and betting illicit

Meanwhile, the latest subpoena to Coinbase marks a significant moment in the ongoing regulatory tension between the US government and the cryptocurrency industry. Under the Biden administration, the CFTC and other regulatory agencies have made recent efforts to strengthen oversight of the cryptocurrency industry. That is expected to change once Trump takes office.

Trump’s Bold Crypto Gambit

Throughout his presidential campaign, Trump expressed his strong support for the cryptocurrency industry and pledged to take steps to improve its adoption if elected. Since his victory, he has begun to follow through on those commitments, including appointing pro-crypto figures to key positions, such as Paul Atkins, who will succeed Gary Gensler as SEC chairman.

He also named former PayPal COO David O. Sacks as the “czar” of artificial intelligence (AI) and cryptocurrency. Meanwhile, Tesla CEO Elon Musk and businessman Vivek Ramaswamy were tasked with heading the newly created Department of Government Efficiency (DOGE)

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