The Commodity Futures Trading Commission (CFTC) debates whether to investigate Crypto.com’s sports betting contracts.
Crypto.com
The CFTC’s five commissioners are discussing a 90-day review of the contracts, which could determine their legality.
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According to a January 14 report by Bloomberg, the CFTC cannot immediately halt trading of the contracts. However, a ruling after the Super Bowl on February 9 could result in their ban.
Crypto.com informed the CFTC on December 19 about plans to launch the contracts, which began trading on December 23. The agency, however, lacked time to review them due to the holiday season and potential government shutdowns.
This situation arises during ongoing efforts by the CFTC to regulate event-based contracts. Such contracts let users bet on outcomes ranging from sports to political events. Platforms like Polymarket have popularized these markets but restricted access to US users to avoid regulatory issues.
The CFTC has also challenged other platforms, such as Kalshi, for offering contracts on political elections, claiming they violate gambling laws. Crypto.com, however, pointed to the CFTC’s loss in that case as giving legal clarity for its event-based contracts.
Meanwhile, Coinbase recently received a legal request linked to Polymarket from the CFTC. How did the company respond? Read the full story.
