The post Crypto.com and Kalshi Under CFTC Scrutiny for Super Bowl Bets appeared on BitcoinEthereumNews.com.

CFTC is scrutinizing Crypto.com and Kalshi’s Super Bowl contracts, which might result in regulatory action. Prediction markets are expanding, but stronger regulations may influence future event-based trading goods. Booming predictions markets, however, have regulators taking a good close look. According to a Bloomberg report, the Commodity Futures Trading Commission is scrutinizing both Crypto.com and Kalshi Inc. over their recently launched Super Bowl event contracts. This indicates possible regulatory headwinds for this rapidly growing sector of event-based trading. Crypto.com, which operates a U.S.-based derivatives exchange, on Dec. 19, gave the CFTC notice of its intent to launch Super Bowl-related contracts by Dec. 23. This left regulators little time to review the products before the holiday season. Weeks later, the CFTC has turned up the heat on its oversight, seeking more details from firms that self-certify their financial offerings. CFTC Scrutinizes Contracts for Super Bowl Event as the Market Grows Under the derivatives laws of the United States, regulators require self-certified contracts to meet strict standards to prevent manipulation and ensure compliance. Though the CFTC cannot immediately intervene and stop trading on the contracts, the agency retains the capacity to enforce bans or introduce any new set of regulations. The CFTC Spokesperson stated that the contracts are being reviewed under existing regulations, and the possibility of future action is still open. Crypto.com had been pretty aggressive in asserting that its event contracts are indeed legitimate and therefore should not be regulated by the CFTC. The company had withdrawn two sports-related filings previously before self-certifying a new contract that focused on spectator sports. Meanwhile, Kalshi opened its “Kansas City vs. Philadelphia” Super Bowl market on Jan. 24 and already has notched nearly $2.5 million in trading volume. It also introduced contracts on brands likely to advertise during the game, generating over $1.5 million…

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Filed under: News - @ February 4, 2025 8:21 am