CFTC plans to review the legality of Crypto.com betting on events like the Super Bowl

2025-01-14 08:37:59

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ChainCatcher news, according to Bloomberg, U.S. federal regulators are deciding whether to investigate the legality of Crypto.com's futures contracts, which allow investors to bet on who will win major sporting events, including the Super Bowl.

According to informed sources, the Commodity Futures Trading Commission (CFTC), composed of five members, is voting on a measure that calls for a 90-day review of these contracts, but these individuals are not authorized to speak publicly. The agency does not have the power to immediately halt trading, and the review will continue until after the Super Bowl on February 9, but the commission may ban such contracts after the review is completed.

The issue is whether these contracts, listed on Crypto.com's derivatives exchange in Chicago, may violate gambling laws. The company followed legal procedures and notified the CFTC of its plans to start trading two days before Christmas on December 19 last year. However, the agency did not have time to review these contracts at that time, as they were submitted just days before the holiday, and the government could potentially shut down.

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