The Commodity Futures Trading Commission (CFTC) is currently deliberating if they should conduct a 90-day assessment on Crypto.com’s sports betting futures contracts, which allow individuals to wager on the winners of significant football matches like the Super Bowl.
Based on a Bloomberg article published on January 14th, it’s been suggested that a five-member federal committee is contemplating an investigation into Crypto.com regarding their future contracts trading platform which allows investors to wager on the results of significant sporting events, as reported by individuals familiar with the situation.
As a researcher, I am currently examining whether the contracts listed on the firm’s Chicago-based derivatives exchange potentially infringe upon laws pertaining to betting contracts, as outlined by the Commodity Futures Trading Commission (CFTC). Historically, the CFTC has expressed strong reservations towards contracts that enable investors to wager on the results of sporting events, conflicts, assassinations, and other activities deemed detrimental to public interest.
As a crypto investor, I was excited to learn about Crypto.com’s announcement of their sports contracts on January 7th. Prior to this, they had informed the Commodity Futures Trading Commission (CFTC) on December 19th, merely two days before Christmas, about the impending launch of these contracts. Unfortunately, due to the timing, the CFTC didn’t have the opportunity to review the contracts before the holidays.
Originally, the company hadn’t intended to debut their latest product over the holiday season. However, they chose to proceed due to concerns about a potential prolonged government shutdown that could lead to missed trading chances during the Super Bowl, as stated by a representative from Crypto.com to Bloomberg.
Fresh for U.S. sports enthusiasts! New competitions are now available to test your predictions:
🏆 Professional Football Conference Finals
🏈 Bowl Matches
🏆 College Football Championship GameStand a chance to earn rewards by accurately forecasting their outcomes!
— Crypto.com (@cryptocom) January 7, 2025
Representing Crypto.com, our spokesperson stated that they haven’t received any information about upcoming actions from the Commodity Futures Trading Commission (CFTC) at this time.
As a researcher, I find it disheartening that the outgoing CFTC leadership is contemplating such an action without giving the incoming administration the opportunity to establish their own approach on how free markets function under their leadership.
From my perspective as a researcher, when I reached out to the Commodity Futures Trading Commission (CFTC) seeking their comment on this particular issue, they chose not to provide one.
Crypto.com’s recent sports contracts are referred to on their website and social media as “Bowl games,” “Pro Football Conference Championships,” and “College Football Championships” rather than using formal names for specific sports events. Yet, within the app, users who are 18 years old and above can place bets on the actual match names like the AFC championship or Super Bowl outcomes.
In 2021, the cryptocurrency trading platform ErisX put forward a comparable proposal involving sports-related contracts. However, prior to the regulatory agency voting on whether to dismiss it, ErisX withdrew their application.
In the United States, established platforms such as FanDuel and DraftKings, along with traditional sportsbooks, have significantly shaped the sports betting market. Interestingly, mobile sports betting is legal in 30 U.S. states, with some provinces of Canada like Columbia also allowing it.
On Polymarket, a platform operating without regulation, you can place bets not only on the outcome of the Super Bowl but also numerous other sporting events. However, they assert that such contracts are unavailable to their users based in the United States.
In late December, the Commodity Futures Trading Commission (CFTC) took action against wagers involving Kalshi.Inc and similar platforms concerning the possibility that Luigi Mangione, the man accused of killing UnitedHealthcare CEO Brian Thompson, would admit guilt for murder.
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2025-01-14 11:52