Crypto.com’s Football Contracts Face CFTC Scrutiny

Amid the growing popularity of event trading contracts and the recent announcement that Crypto.com plans to offer options for wagering on important football games, including the upcoming Super Bowl, the Commodity Futures Trading Commission (CFTC) is reportedly looking into the legality of that offering.

CFTC Anticipates Reviewing Crypto.com’s Futures Contracts on Football Games

The CFTC is an independent federal agency that is in charge of regulating derivatives markets, including futures contracts. It is also authorized to investigate and prosecute foreign currency schemes, commodities fraud, hedge fund fraud and other potential crimes.

Earlier this this month, the CFTC confirmed that its chairman, Rostin Behnam, is expected to step down, effective from February 7, 2025. This move signaled that better times may be coming for political betting in the United States in the context of the Commission’s previous scrutiny of such futures contracts offered in the recent Presidential Elections.

Now, as announced by Bloomberg, the CFTC has initiated a voting process that may result in a 90-day review of the prediction markets Crypto.com will offer on major football games. Reportedly, the watchdog is planning to determine whether or not such contracts would violate the country’s gaming laws.

Currently, the CFTC cannot immediately shut down Crypto.com’s futures contracts for football games, including the Super Bowl. However, upon completion of the review, it may consider banning such futures contracts. Still, it’s important to note that the completion of the 90-day review would span after the Super Bowl, which is planned to take place on February 9, 2025, in New Orleans.

The CTFC’s latest announcement comes after Crypto.com notified the agency about its plans to start offering contracts on football games late in December and just ahead of the Christmas holidays. On December 19, the company filed 10 contracts with the CFTC, notifying it about its plans to start trading on football games.

Crypto.com, Disappointed with the Scrutiny

A spokesperson for Crypto.com confirmed that the company wasn’t notified by the CFTC about the planned review. The spokesperson explained: “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 leadership changes, stemming from the win of Donald Trump at the Presidential Elections are undoubtedly going to impact the Commission’s focus. This is because the new leadership may take a friendlier approach toward cryptocurrency and event trading contracts under Trump’s presidency. After all, Trump recently became the first US president to complete a bitcoin transaction.

In that line of thought, Kalshi recently confirmed its decision to partner with Donald Trump Jr., designating him as a strategic advisor. Seeing the president-elect’s son accept the key role at the popular prediction markets platform reaffirms the growing popularity and importance of political betting markets across the US. Undoubtedly, this move will boost Kalshi’s popularity as well.