Gemini Space Station won approval from the US Commodity Futures Trading Commission to operate its own regulated derivatives clearinghouse, CNBC reported, giving the crypto exchange a deeper foothold in prediction markets and a possible path toward perpetual futures trading.

The approval allows Gemini to clear and settle trades in house instead of relying on outside infrastructure, giving the company more control over how its prediction market products operate and scale. Gemini shares surged nearly 8% by Thursday midday following the news.

Cameron Winklevoss, Gemini’s cofounder and president, told CNBC that owning and operating the marketplace end to end is powerful given the opportunity in prediction markets and future crypto derivatives. He said the structure would let Gemini move faster, improve the customer experience, and respond more quickly to changing market conditions.

The approval comes as crypto exchanges increasingly push into event contracts, derivatives, and prediction markets to reduce their dependence on spot crypto trading, which tends to rise and fall with broader market sentiment. Gemini launched event contracts in December after CFTC approval and intends to expand its derivatives offering beyond prediction markets.

The strategy also lands in the middle of a widening regulatory fight. New York Attorney General Letitia James recently sued Gemini and Coinbase, arguing their prediction market products fall under state gambling rules, while the CFTC sued New York and argued that prediction markets are federally regulated derivatives.

Gemini is trying to make that expansion while under pressure from investors. The company’s shares surged in their September IPO debut but have since fallen sharply alongside a broader crypto market pullback, while investor scrutiny has centered on losses, executive departures, and Gemini’s shift toward AI, agentic trading, prediction markets, and a broader markets platform.

Winklevoss framed prediction markets as a long term growth engine rather than a short term volume gimmick, comparing skepticism around the category to earlier criticism of Bitcoin. He said Gemini also plans to add equities trading, a move that would take the company further beyond its crypto roots and potentially smooth revenue across different asset classes.