CFTC Investigating Crypto.com and Kalshi Event Contracts
The Commodity Futures Trading Commission (CFTC) is seeking information from Crypto.com and Kalshi Inc. regarding their recently launched Super Bowl event contracts. The commission is evaluating the contracts' compliance with derivatives regulations, including assessment of their susceptibility to manipulation and adherence to other regulatory requirements.
Crypto.com has expressed confidence in its products and its intent to cooperate with the CFTC. The company believes that these contracts provide federally regulated market integrity, manipulation controls, and product availability in all 50 states.
The CFTC previously initiated a regulatory review of Crypto.com's sports contracts, but those filings have since been withdrawn. It remains unclear whether the review will continue. Kalshi's contracts, launched shortly after President Donald Trump's inauguration, have not undergone a similar review.
The commission's investigation coincides with Robinhood Markets Inc.'s announcement that it will offer event trading through Kalshi's exchange for its Robinhood Derivatives clients.
The CFTC's inquiries are part of its ongoing efforts to address emerging issues in derivatives markets. The agency will evaluate the responses from Crypto.com and Kalshi and determine any necessary enforcement actions or rulemaking initiatives.