CFTC Probes Crypto Event Contracts
The Commodity Futures Trading Commission (CFTC) has requested explanations from Crypto.com and Kalshi Inc. regarding their Super Bowl event contracts' compliance with derivatives regulations.
Under statute, the CFTC can seek additional information from companies that self-certify their financial products, proving their resistance to manipulation and meeting regulatory requirements. The agency will evaluate responses and determine enforcement actions or new regulations.
"We continue to review contracts under our regulations," said a CFTC spokesperson via email.
Recently, the CFTC announced public roundtables on emerging derivatives market issues, including event contracts. In January, it initiated a special review of Crypto.com's sports contracts to assess whether they constitute gaming, which raises scrutiny for contracts affecting public interest.
The CFTC is anticipated to vote on barring the contracts by mid-April, although trading continues in the interim. Kalshi's contracts, launched after President Trump's inauguration, have not undergone similar review.
Representatives from Crypto.com and Kalshi declined to comment.
Surprise Launch
In late 2025, Crypto.com introduced sports-related event contracts, enabling traders to wager on yes-or-no outcomes, such as the Super Bowl winner. The CFTC was unprepared for the December 23rd launch.
Robinhood Markets Inc. debuted its own sports trading through Kalshi's exchange for Robinhood Derivatives clients on Monday.
"With event contracts as an emerging asset class, we see an opportunity to better serve our customers where their interests converge across markets, news, sports, and entertainment," said the company in a statement.