Bitcoin

Crypto.com, Kalshi Face CFTC Scrutiny Over Superbowl Betting Markets

3Views


The US Commodity Futures Trading Commission (CFTC) has launched an investigation into the sports betting markets offered by major crypto exchange, Crypto.com, and Kalshi, a prominent player in the prediction market space. 

The investigation focused on their compliance with derivatives regulations. 

Both platforms recently introduced ways for users to trade predictions on Super Bowl outcomes. 

Crypto.com and Kalshi allowed users to speculate on the outcomes of high-profile games, such as the upcoming Super Bowl, through financial contracts.

Under current laws, companies can “self-certify” their financial products but must provide additional information upon request from the CFTC.

According to a Bloomberg report dated 3 February 2025, a CFTC spokesperson said, “We are continuing to review the contracts in accordance with our regulations.”

Explore: Trump and Harris Polymarket Odds Shift Even After Trump Dump

New Trend In Crypto Space: Prediction Markets For Sporting Events 

Crypto.com launched sports-related contracts on its Chicago-based derivatives exchange. These contracts enable users to predict outcomes for National Football League (NFL) and college football games. Although the platform avoids explicitly naming games in public-facing materials, team names and outcomes are clearly displayed within its app.

The contracts were submitted to the CFTC for review just before Christmas 2024, leaving the agency with limited time to assess their compliance with federal regulations. According to a CFTC spokesperson, the agency is still reviewing these contracts to determine their legality.

Meanwhile, Kalshi has also come under the CFTC’s microscope. The platform launched a market titled “Kansas City vs Philadelphia Football” on 24 January 2025. Since its debut, this market has recorded over $2.5 million in trading volume.

In addition to game outcomes, Kalshi introduced unique markets allowing users to bet on which companies would run advertisements during the Super Bowl. These ad-related markets have already seen nearly $1.5 million in wagers.

CFTC Has Limited Authority: Can’t Halt Trading

Interestingly, the CFTC does not have immediate authority to halt trading of these contracts before completing its review. This means that both Crypto.com and Kalshi can continue offering their Super Bowl-related markets until at least 9 February 2025—the date of this year’s Super Bowl.

Last week, CFTC acting chair Caroline Pham said it will host public roundtable discussions on market concerns, particularly those pertaining to digital assets. 

In general, prediction markets allow users to place bets on the outcomes of future events, ranging from political elections to economic indicators. These platforms aggregate individual predictions to form a market-driven probability, which can offer a more dynamic and potentially accurate forecast than traditional polling methods.

Explore: US Election Betting: Kalshi’s Rival Polymarket Gains Traction, Supasses $2 Billion

The post Crypto.com, Kalshi Face CFTC Scrutiny Over Superbowl Betting Markets appeared first on 99Bitcoins.





Source link

Leave a Reply