It’s said that the U.S. Commodity Futures Trading Commission is considering investigating the legal status of Crypto.com’s sports-related futures contracts, which involve wagers on football games such as the upcoming Super Bowl.
On January 14th, as reported by Bloomberg, the five members of the Commodity Futures Trading Commission (CFTC) are deliberating over whether to initiate a 90-day assessment to establish if certain contracts potentially breach gambling regulations. This decision is based on information from individuals knowledgeable about the situation.
The agency doesn’t have the ability to halt trades on these contracts right away, and any assessment will be completed following the Super Bowl on February 9. However, the Commodity Futures Trading Commission (CFTC) retains the option to prohibit these contracts from further trading after that date.
On December 19th, Crypto.com, an American derivatives exchange operator, officially notified the Commodity Futures Trading Commission (CFTC) that they intended to begin trading their contracts starting from December 23rd, following all necessary legal protocols.
During the busy Christmas season, when there was also the impending possibility of a government shutdown, the agency unfortunately couldn’t examine them in time, according to Bloomberg’s report.
The proposed testing tool emerges during the CFTC’s struggle to govern event contracts, often used for gambling on various topics like sports or political speeches. These contracts gained traction through decentralized betting platforms such as Polymarket, which claims it doesn’t operate in the U.S.
The agency has challenged its court defeat with betting market provider Kalshi concerning contracts related to the 2024 U.S. elections, arguing these contracts fall under gaming regulations. A representative from Crypto.com informed Bloomberg that this loss provides the company with a broader understanding of the law regarding event contracts, giving them legal certainty.
A representative from Crypto.com shared with CryptoMoon that they haven’t received any notification about potential action from the Commodity Futures Trading Commission (CFTC). Furthermore, they expressed their disappointment that the current and soon-to-depart CFTC leadership might be taking such action without giving the incoming administration a chance to decide how market operations should function under their leadership.
As a researcher exploring digital platforms, I discovered that Crypto.com provides me with opportunities to place bets on the outcomes of various college football and National Football League games, including the Super Bowl – the prestigious finale of the NFL competition, which is one of the globally anticipated sporting spectacles.
Each user is allowed a maximum of 2,500 contracts priced at $100 apiece, whereas our market makers are permitted to manage up to 250,000 contracts.
Or simpler: Users can only have 2,500 contracts worth $100 each, but our market makers can handle up to 250,000 contracts.
The CFTC did not respond to CryptoMoon’s request for comment.
On January 20th, when President Trump assumes office, Rostin Behnam, the current chair of the Commodity Futures Trading Commission (CFTC), will resign. The incoming president has not yet announced his choice for replacing Behnam, but it is believed that he leans towards Summer Mersinger, a pro-cryptocurrency commissioner at the CFTC, to take over the agency’s leadership.
Read More
- RLC PREDICTION. RLC cryptocurrency
- CAKE PREDICTION. CAKE cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- POL PREDICTION. POL cryptocurrency
- OM PREDICTION. OM cryptocurrency
- TRAC PREDICTION. TRAC cryptocurrency
- SXP PREDICTION. SXP cryptocurrency
- CTK PREDICTION. CTK cryptocurrency
- ZEN PREDICTION. ZEN cryptocurrency
2025-01-15 02:20