Gemini Secures Historic CFTC Approval to Launch Prediction Markets in the U.S.
Gemini, the cryptocurrency platform started by Tyler and Cameron Winklevoss, has made a big step forward in getting permission from US regulators. On Wednesday, the company said that its affiliate, Gemini Titan, LLC, has officially gotten a Designated Contract Market (DCM) license from the Commodity Futures Trading Commission (CFTC).
This important approval lets Gemini sell “event contracts,” which are also called prediction markets, directly to customers in the U.S. This puts the company in a good position to compete with up-and-coming companies like Kalshi and Polymarket in the growing speculative economy.
In the U.S. derivatives space, the DCM license is one of the most sought-after regulatory designations. It gives Gemini Titan permission to run a regulated exchange where people can trade options and futures.
Gemini applied for this license in March 2020, more than five years ago, according to the official announcement. The approval ends a long period of regulatory gridlock and begins a new phase of growth for the exchange.
“Today’s approval marks the culmination of a 5-year licensing process and the beginning of a new chapter for Gemini.” — Tyler Winklevoss, CEO of Gemini.
What Are Prediction Markets?
Gemini will start offering event contracts with this license. These are binary options that let people bet on the outcome of real-world events by choosing “Yes” or “No.”
A user might buy a contract based on a certain question, like: instead of buying a token like Bitcoin and hoping the price goes up,
- “Will Bitcoin end 2025 above $200,000?”
- “Will the Federal Reserve cut rates in Q1 2026?”
If the event happens as planned, the contract pays out a set amount, which is usually $1 or $100. If it doesn’t, the contract will be worth nothing. Traders can protect themselves from real-world risks or bet on the outcomes of politics, the economy, and pop culture in this market structure.
The timing of the approval is important. The Winklevoss twins clearly said in their statement that the change in the regulatory environment was due to the “Trump Administration” and the new leadership at the CFTC, which created a “pro-innovation” climate.
After the news, shares of Gemini Space Station, Inc. (NASDAQ:GEMI), the public company linked to the exchange in this timeline, rose about 13% in after-hours trading. This shows that investors are very confident in the revenue potential of regulated U.S. derivatives.
