Coinbase is stepping into the debate over prediction markets, telling U.S. regulators they don’t need new rules to handle them.
In a formal letter to the Commodity Futures Trading Commission (CFTC), the company argued that these markets already fit within existing laws.
The focus is on “event-based contracts” — basically, markets where people trade on the outcome of real-world events, like elections or economic data.
According to Faryar Shirzad, these products aren’t something entirely new. He compared them to traditional futures, saying both work by turning public information and expectations into prices.
Coinbase’s message is clear:
Don’t overcomplicate it.
Instead of creating new regulations, the company wants the CFTC to apply its current framework — but with clear guidance on how it will decide which contracts are allowed and which might be blocked for public interest reasons.
The company also stressed consistency.
It said the same protections should apply to all users, whether they’re trading directly on a platform or through a broker. Clear rules, it argued, will help build trust as more people enter these markets.
This comes at a time when pressure is building.
There are already legal disputes happening at the state level, and different authorities are still figuring out who controls what. That’s creating uncertainty for companies operating in this space.
Coinbase’s stance puts it firmly on the side of federal oversight, rather than a patchwork of state-by-state rules.
And this isn’t the only area where the company is active.
It’s also involved in broader policy discussions, including debates around stablecoins and the CLARITY Act, which could reshape how digital assets are regulated in the U.S.
In short, Coinbase is pushing for a simple idea:
Use the rules that already exist — just make them clearer.
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