The Commodity Futures Trading Commission is currently examining Super Bowl and other sports-related derivatives contracts traded on Crypto.com’s exchange to determine their legality.
The agency has requested that the company halt trading of these contracts, launched on December 23rd, while it conducts a 90-day review to determine if they violate laws against gambling.
If deemed inappropriate, the contracts could be permanently banned from trading. However, Crypto.com has rejected the CFTC’s request and expressed disappointment that the matter was not deferred to the new incoming administration.
The company’s spokesperson also pointed out that this decision conflicts with recent court rulings. Despite the disagreement, Crypto.com remains committed to working with the CFTC and ensuring uninterrupted trading of their sports-related contracts in all 50 states.
The CFTC’s notification has sparked a larger debate among regulators about the boundaries of the event contracts industry, which not only covers harmless topics such as Grammy winners and weather conditions, but also more controversial matters such as election outcomes and criminal cases.
