Super Bowl Bets on Crypto.com Poised for CFTC Review of Legality
- Agency mulls whether sports contracts need more scrutiny
- Trump administration may be more favorable to the asset class
The deliberations highlight the challenges faced by the CFTC as firms in the rapidly growing business of events contracts test the legal boundaries.
Photographer: Jonathan Bachman/Getty ImagesFederal regulators are deciding whether to probe the legality of trading in Crypto.com futures contracts that let investors bet on who will win major football games including the Super Bowl.
The five-member Commodity Futures Trading Commission is in the process of voting on a measure to subject the contracts to a 90-day review, according to people familiar with the matter, who weren’t authorized to speak publicly. The agency lacks the power to halt trading immediately, and the review would extend until well past the Super Bowl’s Feb. 9 game day, but the commission could ban this type of contract after its examination is completed.