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Crypto.com and prediction market Kalshi Inc. are currently under the examination of the US Commodity Futures Trading Commission (CFTC). The regulator has inquired whether the companies’ Super Bowl sports event contracts adhere to derivatives regulations, as reported by Bloomberg.
Last year, Crypto.com introduced its sports event trading product, enabling users to trade their own predictions regarding the Super Bowl. According to Crypto.com co-founder and CEO Kris Marszalek, the product was a regulated platform at the time of its launch.
However, the CFTC has been proactive in investigating the legality of Crypto.com’s Super Bowl futures contracts. In January, a five-member group of agency Commissioners opted to vote on a measure to place the contracts under a 90-day review.
Bloomberg previously reported that the review would extend beyond the Super Bowl’s February 9 game day. The CFTC is expected to cast its vote by mid-April, the report indicated.
The CFTC will determine whether to pursue any enforcement actions or begin drafting a new regulation.
“We are continuing to review the contracts in accordance with our regulations,” a CFTC spokesperson stated to the publication.
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Cryptonews has reached out to Crypto.com for comments but did not receive an immediate response.
Additionally, the CFTC revealed plans to hold public roundtables on prediction markets, including event contracts.
Super Bowl Prediction Contracts Expands
Kalshi’s prediction platform, launched shortly after Trump’s inauguration, has recorded over $2.4 million in trading volume. It introduced the “Kansas City vs Philadelphia Football” who-will-win Super Bowl market on January 24.
Furthermore, Kalshi is expected to announce that users can purchase its prediction markets directly from brokerages, similar to acquiring cryptocurrencies.
Moreover, Robinhood is introducing event contracts allowing US users to bet on the outcome of the game. The platform has been evolving beyond its stock trading, which was launched in October 2024. Robinhood is offering its Super Bowl product through the company’s derivatives division, a Reuters report noted.
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