Report: Coinbase to Share Data in Response to CFTC Subpoena

Core Viewpoint - Coinbase may be required to share customer data with the Commodity Futures Trading Commission (CFTC) as part of an ongoing investigation into prediction markets, specifically regarding interactions with Polymarket [1][2]. Group 1: Regulatory Actions - The CFTC has issued a subpoena to Coinbase for information related to its customers' interactions with Polymarket [1]. - The CFTC's actions are part of a broader legal struggle with prediction market firms, including a recent loss against Kalshi, where a judge ruled that the CFTC could not prevent the listing of election contracts [3]. - In 2022, the CFTC fined Polymarket $1.4 million for failing to register with the regulator [4]. Group 2: Company Responses - Coinbase stated that it carefully reviews government information requests and may seek to narrow overly broad or vague requests [2]. - Polymarket has raised $70 million in new capital across two previously unannounced funding rounds, positioning itself as "the world's largest prediction market" [3]. Group 3: Industry Perspectives - The founder of Polymarket expressed a belief that market-based forecasts will become integral to news consumption and truth-seeking on the internet [4]. - The Acting Director of Enforcement at the CFTC emphasized that all derivatives markets, including those in decentralized finance (DeFi), must operate within legal boundaries [5].