CFTC Puts Crypto.com Super Bowl Contracts on Review, Seeks Pause
01/15/2025 04:57(Bloomberg) -- The Commodity Futures Trading Commission put Super Bowl and other sports-related derivatives contracts traded on Crypto.com’s exchange under review to determine whether they meet legal standards.Most Read from BloombergThese Homes Withstood the LA Fires. Architects Explain WhyAs E-Bikes Boom in NYC, Some Call for More RegulationsA Blueprint for Better Bike LanesThe agency said in a statement Tuesday it asked the company to pause trading of the contracts, which were launched on Dec
(Bloomberg) -- The Commodity Futures Trading Commission put Super Bowl and other sports-related derivatives contracts traded on Crypto.com’s exchange under review to determine whether they meet legal standards.
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The agency said in a statement Tuesday it asked the company to pause trading of the contracts, which were launched on Dec. 23, while it considers whether they violate prohibitions on gaming. The 90-day review could result in a decision to permanently bad trading of the contracts.
A spokesperson for Crypto.com didn’t immediately respond to a request for comment.
Regulators have been grappling with what kind of trading should be allowed in the burgeoning event contracts industry, whose offerings have been linked to relatively tame topics such as Grammy winners and weather, as well as election outcomes and the fate of an accused assassin.
The CFTC and another regulated predictions market, Kalshi Inc., are due in federal court on Friday to argue whether trading on political events constitutes gaming or gambling.
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