{"id":11283,"date":"2025-02-04T14:46:44","date_gmt":"2025-02-04T14:46:44","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=11283"},"modified":"2025-02-04T14:46:44","modified_gmt":"2025-02-04T14:46:44","slug":"crypto-com-kalshi-face-cftc-scrutiny-over-superbowl-betting-markets","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=11283","title":{"rendered":"Crypto.com, Kalshi Face CFTC Scrutiny Over Superbowl Betting Markets"},"content":{"rendered":"<div>\n<p><span style=\"font-weight: 400\">The US Commodity Futures Trading Commission (CFTC) has launched an investigation into the sports betting markets offered by major crypto exchange, Crypto.com, and Kalshi, a prominent player in the prediction market space.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">The investigation focused on their compliance with derivatives regulations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Both platforms recently introduced ways for users to trade predictions on Super Bowl outcomes.\u00a0<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\"><img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/1f6a8.png\" alt=\"\ud83d\udea8\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"><img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/1f1fa-1f1f8.png\" alt=\"\ud83c\uddfa\ud83c\uddf8\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"> JUST IN: The US CFTC is reportedly investigating Super Bowl markets offered by Crypto. com and Kalshi, asking them how they comply with derivatives rules. <a href=\"https:\/\/t.co\/KOBGtDELLM\" target=\"_blank\" rel=\"nofollow\">pic.twitter.com\/KOBGtDELLM<\/a><\/p>\n<p>\u2014 Zeno (@marketsviewai) <a href=\"https:\/\/twitter.com\/marketsviewai\/status\/1886738631013839015?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">February 4, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span style=\"font-weight: 400\">Crypto.com and Kalshi allowed users to speculate on the outcomes of high-profile games, such as the upcoming Super Bowl, through financial contracts. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Under current laws, companies can \u201cself-certify\u201d their financial products but must provide additional information upon request from the CFTC.<\/span><\/p>\n<p>According to a <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-02-03\/crypto-com-kalshi-s-super-bowl-wagers-probed-by-us-derivatives-regulator?ref=blockhead.co&amp;embedded-checkout=true\" target=\"_blank\" rel=\"nofollow\">Bloomberg report dated 3 February 2025,<\/a> a CFTC spokesperson said, \u201cWe are continuing to review the contracts in accordance with our regulations.\u201d<\/p>\n<p><strong>Explore: <a href=\"https:\/\/99bitcoins.com\/news\/trump-and-harris-polymarket-odds-shift-even-after-trump-dump\/\" rel=\"bookmark\">Trump and Harris Polymarket Odds Shift Even After Trump Dump<\/a><\/strong><\/p>\n<h2><b>New Trend In Crypto Space: Prediction Markets For Sporting Events\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400\">Crypto.com launched sports-related contracts on its Chicago-based derivatives exchange. <\/span><span style=\"font-weight: 400\">These contracts enable users to predict outcomes for National Football League (NFL) and college football games. Although the platform avoids explicitly naming games in public-facing materials, team names and outcomes are clearly displayed within its app.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The contracts were submitted to the CFTC for review just before Christmas 2024, leaving the agency with limited time to assess their compliance with federal regulations. According to a CFTC spokesperson, the agency is still reviewing these contracts to determine their legality.<\/span><\/p>\n<p>Meanwhile, <span style=\"font-weight: 400\">Kalshi has also come under the CFTC\u2019s microscope. The platform launched a market titled \u201cKansas City vs Philadelphia Football\u201d on 24 January 2025. Since its debut, this market has recorded over $2.5 million in trading volume.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In addition to game outcomes, Kalshi introduced unique markets allowing users to bet on which companies would run advertisements during the Super Bowl. These ad-related markets have already seen nearly $1.5 million in wagers.<\/span><\/p>\n<h2>CFTC Has Limited Authority: Can\u2019t Halt Trading<\/h2>\n<p><span style=\"font-weight: 400\">Interestingly, the CFTC does not have immediate authority to halt trading of these contracts before completing its review. This means that both Crypto.com and Kalshi can continue offering their Super Bowl-related markets until at least 9 February 2025\u2014the date of this year\u2019s Super Bowl.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Last week, CFTC acting chair Caroline Pham said it will host public roundtable discussions on market concerns, particularly those pertaining to digital assets.\u00a0<\/span><\/p>\n<p>In general, prediction markets allow users to place bets on the outcomes of future events, ranging from political elections to economic indicators. These platforms aggregate individual predictions to form a market-driven probability, which can offer a more dynamic and potentially accurate forecast than traditional polling methods.<\/p>\n<p><strong>Explore: <a href=\"https:\/\/99bitcoins.com\/news\/us-election-betting-kalshis-rival-polymarket-gains-traction-supasses-2-billion\/\" rel=\"bookmark\">US Election Betting: Kalshi\u2019s Rival Polymarket Gains Traction, Supasses $2 Billion<\/a><\/strong><\/p>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/crypto-com-kalshi-face-cftc-scrutiny-over-superbowl-betting-markets\/\">Crypto.com, Kalshi Face CFTC Scrutiny Over Superbowl Betting Markets<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The US Commodity Futures Trading Commission (CFTC) has launched an investigation into the sports betting markets offered by major crypto exchange, Crypto.com, and Kalshi, a prominent player in the prediction market space.\u00a0 The investigation focused on their compliance with derivatives regulations.\u00a0 Both platforms recently introduced ways for users to trade predictions on Super Bowl outcomes.\u00a0 [&hellip;]<\/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-11283","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\/11283","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=11283"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/11283\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}