Coinbase Says Prediction Markets Are Maturing, CFTC Needs No New Mandate
Coinbase urged the CFTC to regulate under existing derivatives law.Federal oversight could prevent fragmented state enforcement across interstate .Courts, regulators, and states are still divided over jurisdiction and enforcement. Coinbase Pushes CFTC Oversight for Coinbase Global Inc. (Nasdaq: COIN) is urging the U.S. Commodity Futures Trading Commission (CFTC) to treat as part of the existing derivatives framework rather than a separate category. Faryar Shirzad, chief policy officer at Coinbase, shared the companys position on X on May 3, outlining a four-point argument tied to a formal comment letter submitted to the regulator on April 30, 2026. Coinbases first point was that event-based contracts already fall within current law. The company argued the CFTC has long overseen derivatives tied to real-world outcomes, meaning do not require new authority. Shirzad said: “ may look novel, but they sit comfortably within existing statutory authority—no new mandate required.” The crypto exchanges second point focused on function, stating these instruments, like futures, aggregate dispersed information into prices and allow participants to hedge uncertainty. The third point addressed regulatory structure. Coinbase said Congress assigned derivatives oversight to the CFTC to ensure consistent national supervision, warning that state-level intervention could create fragmentation in interstate markets. The fourth point focused on enforcement powers. The