{"id":41583,"date":"2025-02-04T14:02:46","date_gmt":"2025-02-04T14:02:46","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=41583"},"modified":"2025-02-04T14:02:46","modified_gmt":"2025-02-04T14:02:46","slug":"crypto-com-kalshi-face-cftc-scrutiny-over-superbowl-betting-markets","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=41583","title":{"rendered":"Crypto.com, Kalshi Face CFTC Scrutiny Over Superbowl Betting Markets"},"content":{"rendered":"

The US Commodity Futures Trading Commission (CFTC) has launched an investigation into the sports betting markets offered by major crypto exchange, Crypto.com, and Kalshi, a prominent player in the prediction market space.\u00a0<\/span><\/p>\n

The investigation focused on their compliance with derivatives regulations.\u00a0<\/span><\/p>\n

Both platforms recently introduced ways for users to trade predictions on Super Bowl outcomes.\u00a0<\/span><\/p>\n

JUST IN: The US CFTC is reportedly investigating Super Bowl markets offered by Crypto. com and Kalshi, asking them how they comply with derivatives rules. pic.twitter.com\/KOBGtDELLM<\/a><\/p>\n

\u2014 Zeno (@marketsviewai) February 4, 2025<\/a><\/p>\n\n

Crypto.com and Kalshi allowed users to speculate on the outcomes of high-profile games, such as the upcoming Super Bowl, through financial contracts. <\/span><\/p>\n

Under current laws, companies can \u201cself-certify\u201d their financial products but must provide additional information upon request from the CFTC.<\/span><\/p>\n

According to a Bloomberg report dated 3 February 2025,<\/a> a CFTC spokesperson said, \u201cWe are continuing to review the contracts in accordance with our regulations.\u201d<\/p>\n

Explore: Trump and Harris Polymarket Odds Shift Even After Trump Dump<\/a><\/strong><\/p>\n

New Trend In Crypto Space: Prediction Markets For Sporting Events\u00a0<\/h2>\n

Crypto.com launched sports-related contracts on its Chicago-based derivatives exchange. <\/span>These contracts enable users to predict outcomes for National Football League (NFL) and college football games. Although the platform avoids explicitly naming games in public-facing materials, team names and outcomes are clearly displayed within its app.<\/span><\/p>\n

The contracts were submitted to the CFTC for review just before Christmas 2024, leaving the agency with limited time to assess their compliance with federal regulations. According to a CFTC spokesperson, the agency is still reviewing these contracts to determine their legality.<\/span><\/p>\n

Meanwhile, Kalshi has also come under the CFTC\u2019s microscope. The platform launched a market titled \u201cKansas City vs Philadelphia Football\u201d on 24 January 2025. Since its debut, this market has recorded over $2.5 million in trading volume.<\/span><\/p>\n

In addition to game outcomes, Kalshi introduced unique markets allowing users to bet on which companies would run advertisements during the Super Bowl. These ad-related markets have already seen nearly $1.5 million in wagers.<\/span><\/p>\n

CFTC Has Limited Authority: Can\u2019t Halt Trading<\/h2>\n

Interestingly, the CFTC does not have immediate authority to halt trading of these contracts before completing its review. This means that both Crypto.com and Kalshi can continue offering their Super Bowl-related markets until at least 9 February 2025\u2014the date of this year\u2019s Super Bowl.<\/span><\/p>\n

Last week, CFTC acting chair Caroline Pham said it will host public roundtable discussions on market concerns, particularly those pertaining to digital assets.\u00a0<\/span><\/p>\n

In general, prediction markets allow users to place bets on the outcomes of future events, ranging from political elections to economic indicators. These platforms aggregate individual predictions to form a market-driven probability, which can offer a more dynamic and potentially accurate forecast than traditional polling methods.<\/p>\n

Explore: US Election Betting: Kalshi\u2019s Rival Polymarket Gains Traction, Supasses $2 Billion<\/a><\/strong><\/p>\n

The post Crypto.com, Kalshi Face CFTC Scrutiny Over Superbowl Betting Markets<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

The US Commodity Futures Trading Commission (CFTC) has launched an investigation into the sports betting markets offered by major crypto exchange, Crypto.com, and Kalshi, a prominent player in the prediction market space.\u00a0 The investigation focused on their compliance with derivatives regulations.\u00a0 Both platforms recently introduced ways for users to trade predictions on Super Bowl outcomes.\u00a0 […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-41583","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/41583"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=41583"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/41583\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}