New regulatory approval positions Gemini to expand derivatives and event-based trading
Crypto exchange Gemini has received a major regulatory green light that will allow it to enter the fast-growing U.S. prediction markets sector. The company confirmed that its affiliate Gemini Titan has secured a designated contract market license from the Commodity Futures Trading Commission, opening the door for a new range of event-based trading products.
Gemini said U.S. users will soon be able to trade event contracts directly through its web platform, a move that marks one of the exchange’s most significant expansions since going public. The firm also plans to broaden its domestic derivatives suite to include crypto futures, options and perpetual contracts, strengthening its competitive position in a crowded market.
News of the approval sent Gemini’s stock surging 13.7% in after-hours trading, closing at $12.92 after a muted regular session. The rally offers a rare boost for the exchange whose share price remains down more than 64% since its September debut amid a choppy crypto environment.
Cameron Winklevoss, the company’s president, said “prediction markets have the potential to be as big or bigger than traditional capital markets,” underscoring Gemini’s long-term strategy to integrate multiple financial tools into a single platform. The exchange’s CEO added that the license represents the culmination of a five-year approval process, first initiated in March 2020, and marks the start of a new phase for the firm.
Interest in prediction markets has accelerated rapidly, with platforms such as Polymarket and Kalshi posting record trading volumes in recent months. However, the sector has also faced scrutiny, as critics argue that some event contracts resemble unlicensed gambling, prompting enforcement actions from state regulators.
Gemini sees the new offering as part of its broader plan to build a multi-product “super app”, as competition intensifies across the crypto industry with other major platforms launching similar features.
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This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.