The Commodity Futures Trading Commission (CFTC) is voting on whether Crypto.com futures contracts, which allow investors to bet on who will win major football games including the Super Bowl, should undergo a 90-day review.
According to Bloomberg a report Published January 14 The five-member federal commission is considering the possibility of an investigation crypto.com On futures trading, which allows investors to bet on the outcomes of major sporting events, according to sources close to the matter.
the That's enough for you It has not yet been determined whether the contracts listed on the company's Chicago-based derivatives exchange violate the laws stipulated regarding betting contracts. The agency has long opposed contracts that allow investors to bet on the results of sports matches, wars, assassinations and other activities that deviate from the public interest.
Crypto.com announced the launch of its sports contracts on January 7, after following legal procedures and notifying the CFTC on December 19 about the launch of its upcoming contracts just two days before Christmas. However, the agency did not have time to review the contracts because they were submitted before the holiday.
Initially, the company wasn't planning to launch its new product over the holidays, but decided to go ahead due to fear of a long government shutdown that might cause the company to miss out on Superbowl trading opportunities, a Crypto.com spokesperson said. Bloomberg.
A Crypto.com spokesperson claimed that the company has not been notified of any pending actions from the Commodity Futures Trading Commission (CFTC).
“It is disappointing that current and soon-to-depart CFTC leadership would consider this action while not allowing incoming CFTC leadership to determine how free markets operate under their leadership,” the spokesperson said.
On the other hand, a representative of the Commodity Futures Trading Commission (CFTC) declined Bloomberg's request for comment on this matter.
Crypto.com's new sports contracts do not explicitly refer to the games by official names on the company's website or social media posts, but simply call them "bowl games," "professional football conference championships," and "college football championships." However, the app displays the names of the official matches, allowing users aged 18 and over to bet on the results of the AFC Championship or the Super Bowl.
In 2021, cryptocurrency trading platform ErisX made a similar proposal for sports-related contracts. Although the exchange withdrew its request before the agency could vote to reject it.
In the United States, platforms like FanDuel and DraftKings dominate the sports betting market, as well as the country's legacy sportsbooks. Mobile sports betting is actually allowed in 30 states, including Colombia in Canada.
Polymarketan unregulated exchange, also allows trading for Super Bowl scores as well as several sports matches. It claims that these contracts are inaccessible to its users in the United States.
Last December, the CFTC cracked down on bets on Kalshi.Inc and other exchanges related to whether Luigi Mangione, the alleged killer of UnitedHealthcare CEO Brian Thompson, would plead guilty to the murder.
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