The Commodity Futures Trading Commission (CFTC) is reportedly considering a detailed review of Crypto.com’s recently announced sports event contracts. However, this scrutiny is unlikely to impact the company’s plans to offer derivatives tied to the upcoming Super Bowl.
According to Bloomberg, the CFTC is voting on a measure that could subject Crypto.com’s sports event contracts to a 90-day evaluation. Even if the review proceeds, its conclusion would come well after the Super Bowl, scheduled for Sunday, February 9, in New Orleans.
The CFTC is reportedly investigating whether these contracts might breach gaming laws. Crypto.com announced its innovative sports event derivatives on December 23. While the company notified the CFTC, the timing near the holidays left insufficient time for immediate regulatory evaluation.
The new offering, branded as a groundbreaking venture, is facilitated by Crypto.com | Derivatives North America, a platform regulated by the CFTC.
Timing Raises Questions Amid Leadership Transition
The potential review comes as the CFTC prepares for new leadership with President-elect Trump’s inauguration next week. A Crypto.com representative criticized the outgoing administration’s timing.
Reflecting the growing interest in regulatory collaboration, Donald Trump Jr. recently joined Kalshi, a leading event contract platform, as a strategic adviser.
Sports Event Contracts: The Next Frontier
Several brokerage firms, including Crypto.com, are exploring sports derivatives as part of the event contract sector. If approved, these contracts could disrupt traditional sportsbook operators, which are limited to state-by-state licensing for sports betting. In contrast, federally regulated platforms like Crypto.com and Kalshi can operate nationwide.
Currently, sports betting is legal in 38 states and Washington, DC, with Missouri set to join later this year.
Crypto.com has already expanded its sports event contract offerings, now including the NFL conference championships and the college football playoffs’ final games. This move underscores the growing potential of sports event derivatives as a transformative addition to the trading and wagering markets.
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