Gemini Secures Derivatives License, Enters Regulated Prediction Markets

The crypto exchange founded by Cameron and Tyler Winklevoss, Gemini, 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 it greater control over its prediction market products. As a result, Gemini's shares experienced a surge of approximately 7%. The prediction market sector has witnessed significant growth, with trading volumes increasing by over 300% in 2025 to $63.5 billion. This expansion into regulated derivatives and prediction markets positions Gemini to compete with established players such as Kalshi and Polymarket, as well as newcomers like Hyperliquid. The company's plans include offering a comprehensive trading ecosystem, encompassing sports, crypto, futures, options, and event-based contracts. Gemini also intends to expand its services to include crypto futures, options, and perpetuals for U.S. users. This milestone marks a significant step in Gemini's efforts to create a 'super app' for financial services, as stated by Cameron Winklevoss. The company's focus on the U.S. market is driven by its belief in the country's capital markets and the potential for prediction markets to rival or surpass traditional capital markets.