Gemini Space Station has received approval from the U.S. Commodity Futures Trading Commission (CFTC) to operate its own regulated derivatives clearinghouse and potentially expand into perpetual futures trading. This move allows Gemini to clear and settle trades in-house rather than relying on outside infrastructure, giving the company greater control over its prediction market products. The approval comes after a lawsuit by New York Attorney General Letitia James against Gemini and Coinbase, arguing that their products fall under state gambling rules and should require licenses from the New York State Gaming Commission. Gemini's cofounder, Cameron Winklevoss, believes prediction markets could be as big as traditional capital markets one day and plans to expand their derivatives offering in the crypto space beyond that. Despite investor skepticism, Gemini's shares have fallen 90% since their IPO and Bitcoin has dropped about 30%.