The U.S. Commodity Futures Trading Commission (CFTC) is reportedly seeking customer data related to Polymarket, a prediction market site, through a subpoena to Coinbase. Coinbase has alerted its customers about the potential sharing of this data with regulators, although the company has not confirmed receipt of the subpoena. The CFTC has been involved in ongoing legal disputes with prediction market firms, and this request comes just before a shift in leadership at the agency, potentially impacting its regulatory approach. A spokesperson for Coinbase stated that requests from government entities are carefully reviewed, and responses may be tailored to avoid overbroad requests. Despite a setback in a separate case against prediction market Kalshi, where a judge ruled that the CFTC could not prohibit election contracts, the agency has appealed. As the political landscape is set to change with President-elect Trump assuming office, there could be further implications for regulatory actions against prediction markets and cryptocurrency exchanges.

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