The Commodity Futures Trading Commission (CFTC) is set to vote on whether to subject Crypto.com’s new futures contracts, which enable users to wager on major football games like the Super Bowl, to a 90-day review.
According to a Bloomberg report on January 14, the five-member federal commission is debating whether the contracts, launched on Crypto.com’s Chicago-based derivatives exchange, violate laws governing betting contracts. The CFTC has historically opposed contracts tied to sports matches, wars, or other events deemed outside the public interest.
Crypto.com launched its sports futures contracts on January 7, having notified the CFTC on December 19, but the late notification prevented a review before the holiday release. The early launch was influenced by concerns over a potential government shutdown affecting Super Bowl trading opportunities. However, the company has not yet received formal notification from the CFTC regarding this matter.
“It is disappointing that the current and imminently departing CFTC leadership would consider this action while not allowing the incoming CFTC leadership to determine how free markets operate under its administration,”
said a spokesperson from Crypto.com.
While the contracts avoid directly mentioning official game titles, referring instead to “Bowl games” or “Pro Football Conference Championships,” Crypto.com’s app displays official match names, allowing users aged 18 and above to bet on events like the AFC Championship and the Super Bowl. A representative from the CFTC declined to comment on ongoing discussions related to this.
Adding to the growing scrutiny of betting markets, U.S. lawmakers recently urged the CFTC to ban wagering on the 2024 presidential election outcomes. In a letter addressed to CFTC Chair Rostin Behnam, Senators Jeff Merkley, Richard Blumenthal, and Elizabeth Warren, alongside Representatives Jamie Raskin and John Sarbanes, argued that election betting could allow wealthy individuals to manipulate outcomes through large wagers, eroding public trust in the democratic process.
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