Crypto.com, Kalshi’s Super Bowl Wagers Probed by US Regulator
- CFTC has been grappling with legality of sports derivatives
- Robinhood announced sports contracts via Kalshi on Monday
The regulator voted in January to put Crypto.com’s sports contracts under a special regulatory review to determine if they qualified as gaming.
Photographer: Eva Marie Uzcategui/BloombergThis article is for subscribers only.
The Commodity Futures Trading Commission is asking Crypto.com and Kalshi Inc. to explain how their recently launched Super Bowl event contracts comply with derivatives regulations.
The agency is allowed by statute to request additional information from companies that “self-certify” their financial products, including demonstrating that they aren’t readily susceptible to manipulation and meet other regulatory requirements. It can evaluate the responses and decide whether to take any enforcement actions or begin drafting a new rule.