Crypto Regulation in Flux: Gemini Receives US License as Poland and EU Grapple with Oversight

Gemini Receives Milestone License in the US

After a five-year wait, the US derivatives regulator CFTC has granted cryptocurrency exchange Gemini a significant license. The Designated-Contract-Market (DCM) license allows Gemini's subsidiary Gemini Titan to offer fully regulated prediction markets in the US for the first time ^[1]. This marks a turning point for a sector that has been characterized by legal uncertainty.

The new license enables Gemini to offer binary event contracts that allow users to wager on real-world events – ranging from macro topics such as "Will Bitcoin close above $200,000 this year?" to political and economic questions ^[1]. Gemini also plans a subsequent expansion into regulated crypto derivatives such as futures, options, and particularly perpetual contracts, which have been among the most-used products in Asia for years but have been difficult to access in the US until now ^[1].

SEC Announces Further Regulatory Relief

The regulatory opening in the US continues. SEC Chair Paul Atkins announced at the Blockchain Association Policy Summit in Washington that further relief measures will follow in 2026. "You ain't seen nothing yet," Atkins said, adding: "All the seeds we have planted will begin to germinate. Then we will be able to reap the fruits" ^[4].

For 2026, Atkins has announced an "innovation exemption" for crypto and fintech projects as his top priority – a time-limited regulatory framework designed to reduce compliance costs and encourage experimentation. "I hope we can publish that by the end of January," he explained ^[4].

The SEC has already taken several important steps this year, including "Project Crypto," a commission-wide initiative to modernize US securities regulations, and approval of generic listing standards for crypto ETFs ^[4].

Poland Resubmits Controversial Crypto Law

While the US loosens its regulations, a crypto bill is causing controversy in Poland. The government has resubmitted the previously vetoed bill 1424 as new draft 2050 – with virtually no changes. "The government has passed exactly the same crypto assets law again," criticized Polish politician Tomasz Mentzen on X ^[2].

The 84-page draft proposes designating Poland's financial regulator as the primary regulator for crypto asset markets. Critics like Mentzen called the original draft "118 pages of over-regulation," particularly in comparison to shorter versions in other EU member states such as Hungary or Romania ^[2].

EU Grapples with Centralized vs. Local Oversight

The Polish debate raises fundamental questions about the implementation of the EU-wide MiCA regulation. While some member states, such as France, called for centralized oversight under Paris's financial regulator ESMA in October, regulators in Malta warn that additional supervisory layers could stifle market innovation ^[2].

Polish economist Krzysztof Piech, a prominent critic of the bill, questions the necessity of local legislation fundamentally, pointing out that MiCA's consumer protection provisions will come into force in 2026 ^[2].

Opposition to US Market Structure Bill

Not everyone welcomes the regulatory efforts. The American Federation of Teachers (AFT) warned in a letter to the Senate Banking Committee that the Responsible Financial Innovation Act "poses profound risks to the pensions of working families and broader economic stability" ^[5]. AFT President Randi Weingarten stated: "We believe that this bill, if enacted, has the potential to lay the groundwork for the next financial crisis" ^[5].

Senator Cynthia Lummis, however, announced that she expects a markup hearing for the bill before the Christmas recess ^[5].