The U.S. Commodity Futures Trading Commission (CFTC) approved Gemini Space Station Inc's (GEMI) application to operate a derivatives exchange on Wednesday, enabling the company to enter the rapidly growing prediction market sector.
In a blog post, Gemini Space Station Inc, co-founded by billionaire twins Tyler and Cameron Winklevoss, announced that it will soon allow existing U.S. customers to trade event contracts via its website and mobile app. The company previously disclosed in pre-IPO regulatory filings its intention to offer contracts related to "economic, financial, political, and sports forecasting" in prediction markets.
Gemini Space Station Inc stated it will "explore expanding derivatives offerings for U.S. clients, including cryptocurrency futures, options, and perpetual contracts." Perpetual contracts, already widely traded on overseas exchanges, are gaining traction among U.S.-based crypto platforms.
Following confirmation of its Designated Contract Market (DCM) license, Gemini Space Station Inc's shares surged 28% in after-hours trading.
The planned derivatives expansion positions Gemini Space Station Inc alongside crypto-native firms like Polymarket that operate in both digital assets and prediction markets. Despite legal uncertainties surrounding the emerging industry—particularly regarding sports-related derivatives—multiple companies have shown strong interest.
Gemini Space Station Inc submitted its DCM application to the CFTC in May. Typically, obtaining regulatory approval to operate a derivatives exchange takes over a year.
A CFTC representative declined to comment, and Gemini Space Station Inc's spokesperson didn't immediately respond to requests for comment.
This approval marks one of the latest actions under Acting Chair Caroline Pham, who has positioned herself as a digital asset advocate and taken multiple steps to facilitate crypto trading on CFTC-regulated platforms.
On Wednesday, Pham also announced Tyler Winklevoss's appointment to the agency's CEO Innovation Committee, which includes Polymarket founder Shane Copeland, CME Group CEO Terry Duffy, and Kalshi co-founder Tarek Mansour.
Pham is expected to depart soon if Michael Selig, President Donald Trump's second nominee for CFTC chair, secures Senate confirmation.
Earlier this year, the Winklevoss twins publicly criticized Trump's initial nominee for permanent CFTC leadership, Brian Quintenz, sparking debate in crypto and derivatives circles. Quintenz currently serves on Kalshi's board—one of the most popular CFTC-regulated prediction markets.
Before a Senate committee vote on Quintenz's nomination, the Winklevoss twins reportedly called the White House requesting a delay. The nomination was ultimately withdrawn in September.
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