The U.S. Commodity Futures Trading Commission has reacted to Super Bowl contracts that were launched by Crypto.com, a cryptocurrency exchange and Kalshi, a retail betting marketplace.
Retail trading giant Robinhood revealed on Monday its plans to launch a Super Bowl prediction market on Kalshi.
This announcement was retracted the next day by the company, which noted that the CFTC requested the firm to “not allow customers access” to sports event contracts.
Explains Robinhood,
While we work to address the concerns of the CFTC, we have suspended the launch of Pro Football Championship. This product has been rolled out to approximately 1% of customers. For those that have already made trades, they will be able to either close them or bring their position to resolution.
This is disappointing, particularly since we were in constant communication with the CFTC regarding our intention and plans to provide this product. In addition, we’ve taken several steps to promote balanced regulation of the derivatives and futures markets. This includes participating in a CFTC Roundtable directly, sending written feedback to CFTC and promoting the benefits economic event contracts.
Robinhood Derivatives continues to work with the CFTC to develop a comprehensive platform for event contracts later in this year.”
Last month, the CFTC announced that it would be investigating two Crypto.com sports contracts. The contracts may involve gambling activity which is forbidden by commodity regulation.
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As new information becomes available, this post CFTC investigates Crypto.com for Super Bowl Event Contracts and Kalshi may change.
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