Crypto.com’s Super Bowl Betting Plans Under CFTC Review
The Commodity Futures Trading Commission (CFTC) is reportedly looking into the legality of Crypto.com’s newly announced event trading contracts.
Crypto.com in a search bar. CFTC examines Crypto.com’s football futures contracts.
LISTEN TO THIS ARTICLE:The contracts, which include options to bet on major football games such as the upcoming Super Bowl, have attracted the agency’s attention as they expand the scope of prediction markets.
The CFTC is an independent federal agency that oversees derivatives markets such as futures contracts. It also investigates crimes involving commodities fraud, hedge fund fraud, and foreign currency schemes.
Recently, the agency announced that its chairman, Rostin Behnam, will step down on February 7, 2025. It is thought that the leadership change could bring new perspectives, especially on contentious issues such as political betting markets.
According to Bloomberg, the agency has started a voting process to decide whether to launch a 90-day review of Crypto.com’s football-focused prediction markets. The evaluation will determine if these contracts align with US gaming laws.
Review to Conclude After the Super Bowl
While the CFTC cannot immediately halt Crypto.com’s contracts for football events, including the Super Bowl, it may take action after the review. Importantly, the 90-day period would not conclude until after the Super Bowl, which is taking place on February 9, 2025, in New Orleans.
Crypto.com disclosed its intentions to the CFTC in December when it filed 10 contracts related to football games just before the Christmas holidays. However, a spokesperson for the site said that the company was not informed about the planned CFTC review.
It is disappointing that the current and imminently departing CFTC leadership would consider this action while not allowing the incoming CFTC leadership to determine how free markets operate under its administration.
More Regulation News
Better Conditions Expected Under Trump
The upcoming leadership changes at the CFTC, resulting from the presidential victory of Donald Trump, are sure to influence the agency’s stance on cryptocurrency and event trading. A more favorable approach is expected under Trump’s administration, given his history with cryptocurrency.
In related news, prediction market platform Kalshi has partnered with Donald Trump Jr., naming him as a strategic advisor.
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