{"id":11223,"date":"2025-02-04T10:31:49","date_gmt":"2025-02-04T10:31:49","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=11223"},"modified":"2025-02-04T10:31:49","modified_gmt":"2025-02-04T10:31:49","slug":"cftcs-inquiry-crypto-com-kalshi-under-scrutiny-for-super-bowl-wagering","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=11223","title":{"rendered":"CFTC\u2019s Inquiry: Crypto.com, Kalshi Under Scrutiny For Super Bowl Wagering"},"content":{"rendered":"
\n

The Commodity Futures Trading Commission (CFTC) has initiated inquiries into Crypto.com and Kalshi Inc. regarding their recently launched event contracts tied to the Super Bowl, as reported <\/a>by Bloomberg.\u00a0<\/p>\n

Crypto.com Vows Cooperation: Prepared To Address CFTC\u2019s Questions<\/h2>\n

Under existing statutes, the CFTC has the authority to request additional information from companies that self-certify their financial products<\/a>. This includes demonstrating that their offerings are not easily manipulable and that they meet various regulatory requirements.\u00a0<\/p>\n

The agency reviews the responses it receives, which could lead to enforcement actions or the drafting of new regulations. A spokesperson for the CFTC confirmed to Bloomberg via email that they are actively reviewing the contracts in question.\u00a0<\/p>\n

The agency recently announced plans to hold public roundtables addressing emerging issues in the derivatives market<\/a>, including the burgeoning category of event contracts.<\/p>\n

Crypto.com has expressed confidence in the legality of its event contracts and is prepared to cooperate with the CFTC\u2019s inquiries.\u00a0<\/p>\n

In a statement, the company highlighted its belief that the CFTC is the appropriate regulator to ensure market integrity and manipulate controls across all states. \u201cWe will continue to offer these contracts while we work with the CFTC,\u201d the spokesperson affirmed.<\/p>\n

New Opportunities Emerge Via Kalshi\u2019s Exchange<\/h2>\n

Earlier this year, the CFTC voted to place Crypto.com\u2019s sports contracts under a special regulatory review to ascertain whether they fell under the category of gaming<\/a>, which typically attracts heightened scrutiny regarding public interest.\u00a0<\/p>\n

Recently, Crypto.com withdrew two filings that were under review and self-certified a new contract related to spectator sports and associated industries, according to public filings with the agency.\u00a0<\/p>\n

In contrast, Kalshi\u2019s contracts, which were launched shortly after President Donald Trump\u2019s inauguration, have not faced similar scrutiny <\/a>from the CFTC.\u00a0<\/p>\n

The impetus for the CFTC\u2019s inquiry appears to stem from the sudden emergence of sports-related event contracts that Crypto.com began offering late last year.\u00a0<\/p>\n

These derivatives allow traders to wager on binary outcomes, such as predicting whether the Kansas City Chiefs or the Philadelphia Eagles will win the Super Bowl. The CFTC was reportedly caught off guard by the launch of these contracts on December 23.<\/p>\n

Adding to the complexity, Robinhood Markets announced Monday that it would introduce its own sports trading options via Kalshi\u2019s exchange <\/a>for Robinhood Derivatives clients.\u00a0<\/p>\n

The company noted the potential of event contracts as an emerging asset class, stating, \u201cWe recognize an opportunity to better serve our customers as their interests converge across the markets, news, sports, and entertainment.\u201d<\/p>\n

\"Crypto.com\"<\/p>\n

Featured image from DALL-E, chart from TradingView.com <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Commodity Futures Trading Commission (CFTC) has initiated inquiries into Crypto.com and Kalshi Inc. regarding their recently launched event contracts tied to the Super Bowl, as reported by Bloomberg.\u00a0 Crypto.com Vows Cooperation: Prepared To Address CFTC\u2019s Questions Under existing statutes, the CFTC has the authority to request additional information from companies that self-certify their financial […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-11223","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/11223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11223"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/11223\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}