Crypto.com Rejects CFTC Request To Halt Sports Trading


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Crypto.com has refused a request from the US Commodity Futures Trading Commission to halt its sports event trading contracts ahead of the Super Bowl.

These contracts, which allow users to predict the outcomes of major football games, are at the center of a regulatory investigation into whether they violate US gaming laws.

“It is disappointing that the current and imminently departing CFTC leadership would take this action while not allowing the incoming CFTC leadership to determine how free markets operate under its administration,” a Crypto.com spokesperson said in an emailed statement. “The majority’s decision to apply this rule contradicts recent Federal Court rulings and conflicts with the current Commission’s own statement set forth in its recent rule proposal. 

“We remain committed to working with the CFTC and will continue to support our customers and the trading of our sports title event contracts in all 50 states without interruption while we review the CFTC’s notification.”

CFTC unsure if sports trading violates law

The agency announced that it had asked Crypto.com to temporarily halt the trading of its sports contracts, which debuted on Dec. 23, as it evaluates whether they breach gaming restrictions.

The review process, expected to take 90 days, could potentially lead to a permanent ban of these contracts.

Crypto.com’s pushback comes as the CFTC faces a separate request from two US Senators to investigate alleged antitrust practices between DraftKings and FanDuel.

Financial trading or sports betting?

The CFTC’s scrutiny highlights the growing tension between innovative financial products and traditional sports betting regulations.

While Crypto.com positions its contracts as financial instruments, others argue they closely resemble sports betting markets, which are licensed and regulated on a state-by-state basis.

Crypto.com’s decision could set a precedent for other platforms, such as Robinhood, which has explored similar concepts.

Robinhood CEO Vladimir Tenev recently suggested that the company might enter the sports betting market through “events contracts,” which potentially bypass state-by-state licensing requirements.

Photo by Shutterstock / Amnaj Khetsamtip