Gemini Secures Derivatives License, Enters Regulated Prediction Markets

Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has received approval from the U.S. Commodity Futures Trading Commission (CFTC) for a derivatives clearinghouse license. This development enables Gemini to clear and settle trades internally, granting the company greater control over its prediction market products. As a result, Gemini's shares experienced a 7% surge following the announcement. The prediction market sector has witnessed significant growth, with trading volumes increasing by over 300% in 2025 to $63.5 billion. With this license, Gemini is poised to compete with established players such as Kalshi and Polymarket, as well as newcomers like Hyperliquid. The company aims to offer a comprehensive trading ecosystem, including sports, crypto, futures, options, and event-based contracts. Gemini also plans to expand its offerings to include crypto futures, options, and perpetuals for U.S. users. According to Cameron Winklevoss, this milestone marks a significant step towards creating a 'super app' for financial services. Gemini's foray into prediction markets is part of its broader strategy to focus on the U.S. market, following its exit from the U.K., European Union, and Australia earlier this year.