polymarket-customer-data-subpoenaed-by-us-cftc-from-coinbase

**Polymarket Customer Data Subpoenaed by US CFTC from Coinbase**

The U.S. Commodity Futures Trading Commission is seeking information about customers’ interactions with the prediction market site Polymarket. On January 9, 2025, at 11:30 p.m. UTC, Coinbase Inc. (COIN) informed customers that a U.S. regulator is demanding information about interactions with the prediction market firm Polymarket.

**Coinbase Alerts Customers**

According to a source familiar with the situation, Coinbase has sent messages to customers warning that the exchange may have to share data with the U.S. Commodity Futures Trading Commission (CFTC). Copies of these emails have been circulating on social media platforms, confirming the accuracy of the warnings.

**Regulatory Review Process**

A Coinbase spokesperson stated, “When we receive requests for information from a government, each request is carefully reviewed by a team of trained experts using established procedures to determine its legal sufficiency.” The company aims to provide tailored responses and object to producing information when necessary.

**Legal Battles and Leadership Change**

The CFTC has been engaged in legal battles with prediction market firms, with a recent case involving Kalshi. The agency lost the initial case against Kalshi, leading to an appeal. The timing of the request for customer information coincides with the impending change in leadership at the CFTC as President-elect Donald Trump prepares to take office.

**Potential Leadership Candidates**

With the upcoming change in the agency’s leadership, potential candidates for the open chairmanship include sitting Republican commissioners Caroline Pham and Summer Mersinger, as well as former Commissioner Brian Quintenz.

Jesse Hamilton, CoinDesk’s deputy managing editor on the Global Policy and Regulation team, provides valuable insights into the regulatory landscape. With a background covering Wall Street regulation and a deep understanding of the crypto industry, his expertise sheds light on the implications of the CFTC’s actions.

Jesse’s extensive experience in journalism, including reporting from Iraq and covering federal agencies, brings a unique perspective to the unfolding developments in the regulatory environment. As a graduate of Western Washington University with no crypto holdings, Jesse’s objective analysis offers clarity amidst complex regulatory issues.

With the regulatory landscape evolving rapidly, the implications of the CFTC’s actions on Polymarket and Coinbase customers remain to be seen. Stay tuned for updates on this developing story as the situation continues to unfold.