- Crypto.com continues Super Bowl bets while addressing CFTC’s regulatory concerns.
- CFTC reviews sports contracts, examines “gaming” classification for Crypto.com and Kalshi.
Crypto.com and Kalshi Super Bowl bets under the legal Spotlight. The Commodity Futures Trading Commission (CFTC) is investigating them for sports-related prediction market contracts.
On this, crypto exchange Crypto.com stated that they will continue providing wages on the Super Bowl. They will also work with the CFTC to address any concerns and demonstrate that their contracts comply with the necessary regulations.
All this happened when the US CFTC raised questions about how their Super Bowl events contracts are considered a form of gambling (referred to as “gaming”) under the derivatives regulations.
On this, a Crypto.com spokesperson expressed confidence in their products and said,
“We firmly believe in the legality of our events contracts and believe the CFTC is the appropriate regulator to bring federally regulated market integrity, manipulation controls, and product availability in all 50 states,”
In January, the regulator voted to review Crypto.com sports contracts to decide if these contracts should be classified as “gaming.” If classified as gaming, these contracts would face extra scrutiny.
The CFTC also highlights that they are also reviewing similar events contracts from the prediction markets platform Kalshi.
Will Crypto.com Trading Halt?
The commission stated that they can’t block the trading activities of Crypto.com and Kalshi’s Super Bowl event contracts instantly. The reason behind this is the review will take 90 days to complete and by the time the Super Bowl event is over.
However, after investigation, The CFTC could ban the contracts. This is not the first instance crypto.com has come under the regulatory radar. Last year, the platform began offering sports-related event contracts that let traders bet on a yes-or-no outcome on questions.
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