Nikolas Sargeant
Crypto.com has confirmed it will continue offering wagers on the Super Bowl as it collaborates with the U.S. Commodity Futures Trading Commission (CFTC) to address regulatory concerns. This comes after Bloomberg reported on February 4 that the CFTC had requested both Crypto.com and prediction platform Kalshi to explain how their Super Bowl event contracts comply with U.S. derivatives regulations. Crypto.com, which operates a U.S.-based derivatives exchange, notified the CFTC of its plan to offer these contracts in December 2022, though the agency was unable to review them before the holidays due to a potential government shutdown.
In response to these concerns, Crypto.com expressed confidence in the legality of its event contracts, stating that it believes the CFTC is the appropriate regulatory body for ensuring market integrity and fair play. A CFTC spokesperson also confirmed that Kalshi, which offers similar Super Bowl contracts, is under review for the same issues. The CFTC, now under the leadership of Caroline Pham, will have until February 9—after the Super Bowl—to issue a ruling, but it can still take enforcement action afterward if needed.
CFTC’s Expanding Reach
While neither Crypto.com nor Kalshi face immediate action, the CFTC's investigation highlights its heightened focus on emerging products in the derivatives market. The agency’s review process, which includes requests for additional information to prevent market manipulation, typically takes around 90 days. As the CFTC steps up its oversight of prediction markets, Crypto.com remains committed to its legal stance and the integrity of its platform, ensuring users can continue placing bets on events like the Super Bowl.
Kalshi’s own Super Bowl contracts, which allow users to bet on outcomes such as the game’s winner and which companies will air ads, have attracted significant interest, with over $2.4 million in trading volume for the game’s winner alone. Additionally, Robinhood Derivatives has partnered with Kalshi to offer similar wagers, signaling a growing trend in the prediction market space. The outcome of the CFTC’s review could have lasting implications for the future of such markets, particularly those powered by blockchain technology.
