The CFTC Investigates Crypto.com and Kalshi for Derivatives Compliance
- The CFTC is questioning whether Crypto.com and Kalshi meet derivatives regulations
- In December, Crypto.com’s CEO claimed its derivatives trading platform was the “first regulated platform in the US”
- Robinhood launched its Super Bowl event contracts on Monday
Crypto.com and prediction marketplace Kalshi are currently under scrutiny by the US Commodity Futures Trading Commission (CFTC) to determine if their Super Bowl event contracts adhere to derivatives regulations.
Back in December 2024, Crypto.com introduced its derivatives trading platform, allowing users to wager on the outcomes of sports events, such as the upcoming Super Bowl LIX on February 9, 2025, featuring the Kansas City Chiefs and the Philadelphia Eagles.
Kris Marszalek, the co-founder and CEO of Crypto.com, proudly stated that they were the “first regulated platform in the US to offer it to our users.”
Kalshi’s Involvement
Kalshi, on the other hand, launched its prediction platform shortly after President Donald Trump’s inauguration in January and initiated its Kansas City vs. Philadelphia Football prediction on January 23.
According to a report from Bloomberg, the CFTC is currently reviewing the contracts to ensure compliance with their regulations.
Bloomberg previously reported in January that a five-member group of CFTC commissioners had decided on a 90-day review period for the contracts, extending beyond the upcoming Super Bowl game.
The CFTC is expected to make a decision by mid-April on whether to allow event contracts or issue a new ruling.
Robinhood’s Entry into the Market
Meanwhile, Robinhood made an announcement on Monday about launching its event contracts, allowing users to predict the game’s outcome through Kalshi’s exchange.
Primarily known for its stock trading services, Robinhood’s expansion into event contracts offers another avenue for users interested in market engagement.