Crypto.com and Kalshi face CFTC scrutiny over Super Bowl event contracts

The prediction markets are booming, but the CFTC is careful. With Crypto.com and Kalshi under examination, could the stricter surveillance come for trading based on events?

The Commitoy Futures Trading Commission examines closely Crypto.com And Kalshi Inc., seeking the clarity of how their newly launched Super Bowl event contracts align with the regulations of American derivatives, according to Bloomberg.

This increased surveillance comes in the heels of January 27 announcement in which the CFTCLeadership is committed to monitoring emerging problems on the derivative market, commercial products based on events falling outright in sight.

Crypto.com, which exploits an exchange of derivatives based in the United States, had informed The CFTC on December 19 of its intention to launch contracts related to the Super Bowl before December 23.

However, the short notice left the regulators with a minimum of time to review the products before the Christmas holidays and in a context of concerns concerning a possible closure of the government.

A few weeks later, the CFTC is now beating its regulatory authority, requesting additional information from companies that self -cope their financial offers.

Under the laws on existing derivatives, companies that take place must demonstrate that their products are not easily manipulated and respect American regulations.

Although the CFTC examination process does not grant the immediate power to stop, the agency can subsequently issue prohibitions or take application measures if concerns occur.

A spokesperson for the CFTC confirmed: “We continue to examine contracts in accordance with our regulations”, while leaving the door open to potential application or new regulations.

Crypto.com remains firm in defense of his position. “We firmly believe in the legality of our event contracts and think that the CFTC is the appropriate regulator to provide integrity of the market regulated by the federal government, handling controls and the availability of products in the 50 states”, said a company spokesperson.

Interestingly, Crypto.com had previously withdrawn two sports deposits which were under regulatory control, later choosing to self -certify a new contract targeting the sports of spectators and the related industries.

Meanwhile, Kalshi Inc. spear Its Super Bowl market “Kansas City against Philadelphia” on January 24, which has already seen the commercial volume climb to almost $ 2.5 million on January 4.

In addition, the company has introduced contracts allowing users to bet on brands likely to advertise during the Super Bowl, attracting more than 1.5 million dollars in commercial activity.

In the midst of this, the broader industry in prediction markets has experienced volatility.

During the American presidential electoral cycle 2024, Polymarket—The largest decentralized prediction market – has carried out more than $ 2.5 billion in Paris, with bets linked to the elections leading the wave.

However, by January 2025, volumes abandoned Significantly at around $ 1.24 billion, reflecting a cooling interest after electoral media threw has calmed down.

Continuous examination of the CFTC coincide with Robin Market entry into events based on events. On February 3, Robinhood announced that it would allow its customers derivatives to exchange sporting contracts via the Kalshi Stock Exchange.

“With an emerging asset class like event contracts, we recognize the opportunity to better serve our customers because their interests converge in markets, news, sports and entertainment,” said Robinhood.

Although the agency cannot immediately stop the trade in these contracts due to a 90 -day compulsory examination process, it retains the power to prohibit them later. With the Super Bowl scheduled for February 9, any decision will come after the event.