The Commodity Futures Trading Commission (CFTC) granted Gemini Space Station Inc. approval to operate a derivatives exchange. This gives it immediate access to the growing prediction markets space in the United States.
Key Takeaways
- Gemini received CFTC approval to operate a derivatives exchange and offer event contracts to American users.
- The approval reinforces the expansion of crypto-native firms into prediction markets amid rising regulatory attention.
- The decision comes during a period of active digital asset policymaking at the CFTC as leadership transitions loom.
Gemini, founded by Tyler and Cameron Winklevoss, can now offer event contracts to existing U.S. customers through its website and mobile app. The firm previously signaled its intention to list markets tied to economic data, political outcomes, financial indicators, and sports forecasts in filings ahead of its planned initial public offering.
Gemini also stated it intends to assess broader derivatives products for users, including crypto futures, options, and perpetual contracts. All have seen strong demand on both international and domestic crypto platforms.
Prediction markets have the potential to be as big or bigger than traditional capital markets. Acting Chairman @CarolineDPham understands this vision and its importance. Unlike her predecessor, Acting Chairman Pham has positioned the @CFTC as a pro business, pro innovation… https://t.co/uNnMt8Gfcj
— Cameron Winklevoss (@cameron) December 10, 2025
The company’s stock climbed as much as 28% in after-hours trading following confirmation of its designated contract market license. The approval adds another crypto-native operator to the growing group of firms moving into event-based derivatives, a field that has attracted interest despite questions about how sports-related contracts fit within current regulatory frameworks.
The decision also reflects ongoing activity at the CFTC under acting chairman Caroline Pham, who has supported expanded oversight of digital assets during her tenure. She is expected to leave the agency if nominee Michael Selig is confirmed by the Senate.
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Polymarket expands U.S. presence with new mobile app
Gemini’s move into prediction markets comes as other entrants scale up their U.S. operations. Earlier this month, Polymarket introduced a mobile app for American users, marking its most significant domestic expansion since resolving its 2022 compliance case with the CFTC.
The app, now live on iOS and opening access through a waitlist, allows participants to trade sports event outcomes with real money under federal regulatory oversight. Android availability is expected to follow.
Polymarket halted its U.S. activity after regulators determined it offered unregistered event-based derivatives, resulting in a $1.4-million settlement. With approval to operate as an intermediated exchange, it now works within a framework similar to that of other federally regulated commodities venues. The company is now presenting the platform not as a sportsbook but as a marketplace for trading real-world event probabilities.
The app is concentrating on sports markets but is expected to expand into proposition-style events. This development coincides with growing public interest in the use of prediction markets as aggregated expectations in political, policy, and economic matters.
The momentum in the industry was further emphasized by a recent $1-billion funding round for competitor Kalshi, which valued the company at $11 billion.
