The U.S. Commodity Futures Trading Commission (CFTC) has issued a subpoena to the crypto exchange Coinbase, requesting customer data related to the ongoing Polymarket case.
CFTC Subpoenas Coinbase Regarding Polymarket Case
Eric Conner, co-author of Ethereum’s EIP-1559 proposal, was the first to highlight the current government’s influence over CFTC in issuing the subpoena for information about certain Coinbase users in connection to the Polymarket case. Conner commented, “The Dems’ crypto pivot truly was something else!”
Biden’s CFTC is subpoenaing customer info from @coinbase in their case against @Polymarket pic.twitter.com/YlCdUPwHs7
— eric.eth (@econoar) January 8, 2025
Coinbase has apparently sent an email to affected customers, saying:
“You do not need to take any action, but Coinbase may need to send information related to your account to the Commodity Futures Trading Commission in response to the subpoena request, unless by the close of business on January 15, 2025, Coinbase formally receives a motion to quash the subpoena or other legal documents preventing Coinbase from sharing such information.”
The email sparked a lot of reactions from the crypto community, with many criticizing what they saw as a ‘180 degree pivot’ in the Democrats administration’s stance on cryptocurrency. Netizens accused the government of engaging in a “witch hunt” against the industry.
One X user, @WazzCrypto, remarked, “This will be in the history books as one of the most asinine targeted attacks by an administration on a whole industry.”
Polymarket CFTC Tug-of-War
The Polymarket-CFTC saga began when the current U.S. government launched both criminal and civil investigations into the cryptocurrency prediction market Polymarket. On November 13, 2024, the Federal Bureau of Investigation (FBI) raided the New York residence of Polymarket founder and CEO Shayne Coplan, seizing his phone and other electronic devices.
Under U.S. law, election betting is only legal in markets regulated by the CFTC. Polymarket is accused of allowing U.S. users to place election-related bets on its platform, potentially violating its 2022 settlement agreement with the CFTC. As part of that agreement, Polymarket paid a $1.4 million fine for operating without proper registration and committed to ceasing services for U.S.-based users.
Also Read: Ripple & Coinbase SEC Lawsuit: Contrasting Approach By US Courts
