The Commodities and Futures Trading Commission (CFTC) is evaluating Crypto.com's recently launched sports event contracts, with particular attention to their Super Bowl derivatives offering.

According to Bloomberg News sources, the CFTC is voting on implementing a 90-day review period for these contracts. This review would extend beyond the Super Bowl scheduled for February 9 in New Orleans, allowing Crypto.com to proceed with its planned offerings for the event.

The regulatory body's primary concern is whether these sports contracts might violate existing gaming laws. Crypto.com announced the derivatives offering shortly before Christmas, leaving insufficient time for proper CFTC review during the holiday period.

The timing is particularly noteworthy as it coincides with the presidential transition. A Crypto.com representative expressed disappointment that the current CFTC leadership would consider this action instead of allowing the incoming administration to make determinations about free market operations.

The development of sports event contracts represents a potential shift in the wagering landscape. Unlike traditional sportsbooks that require state-by-state approval, federally regulated firms like Crypto.com can operate across all 50 states. This advantage could pose significant competition to conventional sports betting operators, who are currently limited to the 38 states (plus Washington, DC) where sports wagering is legal.

Crypto.com has already expanded its sports event contracts to include NFL conference championships and the final three college football playoff games, demonstrating the platform's commitment to growing this segment despite regulatory scrutiny.

Related Articles

Previous Articles