According to Bloomberg, federal regulators are weighing the legality of Crypto.com futures contracts that allow investors to bet on the outcomes of major football games, including the Super Bowl.
| Key Takeaways: – The CFTC is considering a 90-day review of Crypto.com futures contracts to assess potential violations of gaming laws. – Crypto.com launched the contracts in December, but the CFTC lacked time to review them due to the holidays. |
The Commodity Futures Trading Commission (CFTC) is currently voting on whether to initiate a 90-day review of the Crypto.com futures contracts, according to sources familiar with the situation.
The contracts, listed on Crypto.com’s Chicago-based derivatives exchange, have raised questions about potential violations of gaming laws. Crypto.com notified the CFTC of its intent to launch the contracts on December 19, with trading beginning two days later. However, the timing—close to the holidays and amid a possible government shutdown—left the agency without sufficient time for a thorough review before trading commenced.
If approved, the CFTC’s review could extend beyond the Super Bowl on February 9. While the agency lacks immediate authority to halt trading, it could ultimately ban the Crypto.com futures contracts following its investigation.
A spokesperson for Crypto.com stated the company had not been informed of any pending action.
“It is disappointing that the current and imminently departing CFTC leadership would consider this action while not allowing the incoming CFTC leadership to determine how free markets operate under its administration,” the spokesperson said. A CFTC representative declined to comment.
Crypto.com futures contracts are tied to college and NFL game outcomes, but it avoids using official game names on its website or social media. However, the firm’s app promotes wagers for users aged 18 and older, inviting them to bet on teams like the Kansas City Chiefs or Baltimore Ravens winning the AFC Championship or the Super Bowl.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
