Cameron and Tyler Winklevoss. Photo: Debby Wong/Shutterstock
Gemini has received permission from a major U.S. regulator to offer prediction markets. Gemini is an American crypto exchange founded by the wealthy brothers Tyler and Cameron Winklevoss. Users buy, sell, and store cryptocurrencies there.
The company of the crypto billionaires is known for strict compliance with regulations. This may be a reason for the Commodity Futures Trading Commission (CFTC) to grant permission. Gemini said in a statement on Wednesday that the approval opens space for a new financial service in a market that previously had little clarity.
Gemini’s Move Important for Crypto Sector #
Prediction markets allow users to bet on events through contracts. These contracts pay out when a prediction comes true. These products fall under strict rules in the United States. The decision to allow Gemini into this market shows that regulators are providing more clarity about what is permitted. This gives companies more certainty when developing new services.
The assessment focused on risks such as fraud, market abuse, and user protection. Gemini had to demonstrate that transactions are executed securely and transparently. Through this step, the company gains an advantage in a market that remained closed to American exchanges for a long time. Other providers are following this process because it provides direction for future applications.
Regulator’s Approval, Under These Conditions #
The approval focuses on contracts through which users make predictions about predetermined outcomes. The regulator monitors how these contracts are processed and how risks are mitigated. The decision confirms that the services fit within existing legislation, as long as providers use clear processes for safety and oversight.
The approval means Gemini bears more responsibility. The company must remain transparent about risks and reporting. These requirements apply to all providers of new financial products.
Market Reaction After Gemini’s Move #
Gemini’s stock rose in after-hours trading on Wednesday following the news that the company may offer prediction markets. Investors see the approval as an important step for the platform.
Gemini’s shares rose sharply after the announcement. Source: CNN Markets.
The stock had been under pressure since its IPO due to weakness in the crypto market. The rise shows that more clarity from regulators influences confidence around companies introducing new services.