Crypto.com and Kalshi Face CFTC Review Over Super Bowl Bets

The CFTC has asked both platforms to explain how their contracts follow derivatives rules. While the review is ongoing, these markets remain open.

Crypto.com informed the CFTC on December 19, 2024, that it planned to launch its Super Bowl-related contracts on December 23, 2024. However, due to the holiday season and concerns over a possible government shutdown, the agency did not have time to review them before they went live.

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The CFTC has also started looking into Kalshi’s event-based contracts, including a market predicting the winner of the February 9 game.

Kalshi launched its Super Bowl prediction market on January 24, which has already seen over $2.4 million in trading. While these markets have drawn interest, their long-term approval remains uncertain.

Under existing regulations, companies can introduce new financial products if they “self-certify” that their offerings meet legal requirements and cannot be easily manipulated. The CFTC then decides whether further action is necessary.

Since the CFTC takes 90 days to complete a review, it cannot halt these contracts before the event takes place. However, the agency could decide to ban them afterward if they do not meet compliance standards.

Meanwhile, Coinbase $2.66B recently informed users that it had received a legal request from the CFTC. What did Coinbase say? Read the full story.