CFTC Probes Crypto.com and Kalshi Over Super Bowl Event Contracts

The U.S. Commodity Futures Trading Commission (CFTC) has launched investigations into Crypto.com and Kalshi, two platforms that recently introduced Super Bowl event contracts. The CFTC's actions come as a surprise to both companies, which had been in communication with the regulatory body regarding their plans to offer these products.

Crypto.com, a popular cryptocurrency exchange, had launched two sports contracts related to the Super Bowl. However, the CFTC has been probing these contracts, citing potential gaming activity that may be prohibited. The investigation is ongoing, and no further details have been released.

Kalshi, a retail betting market, had planned to roll out a prediction market for the Super Bowl in collaboration with Robinhood. The announcement was made on Monday, but the following day, Robinhood walked back the plans, stating that the CFTC had requested they not permit customers to access sports event contracts.

In a statement, Robinhood explained that they were suspending the rollout of the Pro Football Championship market and would provide options for customers who had already placed trades. The company expressed disappointment in the outcome, given their previous communication with the CFTC and their efforts to advocate for balanced regulation in the futures and derivatives markets.

Both Crypto.com and Kalshi are now working with the CFTC to address the regulatory concerns and potentially roll out more comprehensive event contracts platforms later this year. The CFTC's investigations highlight the importance of clear communication and compliance with regulatory guidelines in the rapidly evolving world of digital assets and event contracts.