Crypto.com and prediction market Kalshi Inc. are under the scrutiny of the US Commodity Futures Trading Commission (CFTC). The regulator has questioned the companies whether their Super Bowl sports events contracts are compliant with derivatives regulations, Bloomberg reported.
Last year, Crypto.com launched its sports event trading product, allowing users to trade their own prediction on the Super Bowl. According to Crypto.com co-founder and CEO Kris Marszalek, the product was a regulated platform during its launch.
However, the CFTC has been keen in investigating the legality of Crypto.com’s Super Bowl futures contracts. In January, a 5-member group of agency Commissioners decided to poll on a measure to pull the contracts on a 90-day review.
Bloomberg previously reported that the review would extend until past the Super Bowl’s Feb. 9 game day. The CFTC is expected to vote by mid-April, the report added.
The CFTC will decide whether to take any enforcement actions or begin drafting a new rule.
“We are continuing to review the contracts in accordance with our regulations,” a CFTC spokesperson told the publication.
Cryptonews has reached out to Crypto.com for comments, but did not receive immediate response.
Besides, CFTC unveiled plans to organize public roundtables on prediction markets, including events contracts.
Super Bowl Prediction Contracts Widens
Kalshi’s predictions platform, launched days after Trump’s inauguration, has seen over $2.4 million in trading volume. It launched “Kansas City vs Philadelphia Football” who-will-win Super Bowl market on Jan. 24.
Further, Kalshi is expected to announce that users can buy its prediction markets directly from brokerages, similar to purchasing cryptocurrencies.
Additionally, Robinhood is rolling out event contracts letting US users wager on the outcome of the game. The platform has been evolving beyond its stock-trading, which was launched in October 2024. Robinhood is offering its Super Bowl product through the company’s derivatives arm, a Reuters report read.
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