The CFTC Is Investigating Crypto.com's Futures Contracts That Allow Bets on Football Matches, Including the Super Bowl

The Commodity Futures Trading Commission (CFTC) has launched an investigation into Crypto.com's futures contracts that allow bets on football matches

The Commodity Futures Trading Commission (CFTC) has reportedly opened an investigation into Crypto.com’s futures contracts that allow bets on football matches, including the upcoming Super Bowl. According to sources, the CFTC is discussing a possible 90-day review of these contracts to assess whether they violate federal gambling laws.

The sources stated that the review will evaluate whether the contracts are legally permissible for betting on football games. The CFTC has a history of opposing agreements that involve betting on the outcome of sporting events and other activities deemed harmful to the public interest, but it has not yet made a determination on whether these specific contracts violate those laws.

Due to operational constraints, the regulator cannot immediately halt trading in these contracts. As a result, any review process would likely continue past the Super Bowl, which is scheduled for February 9. However, a ban could be imposed after the event.

On December 19, 2024, Crypto.com notified the CFTC of its plan to launch these sports contracts, which occurred just two days before Christmas. Initially, the company intended to delay the launch, but it ultimately decided to proceed early due to concerns that a government shutdown could delay regulatory reviews and impact trading opportunities tied to the Super Bowl.

The potential investigation comes at a crucial time as the CFTC continues to refine its approach to regulating event contracts, which cover a broad range of possible outcomes, including the specific words used by politicians in speeches. The growth of such contracts has been evident on decentralized betting platforms like Polymarket, despite recent restrictions on users in the United States.

Interestingly, Crypto.com’s newly introduced contracts do not specify games by their official names on the platform or social media. Instead, they use generic descriptions such as "Bowling Games," "Pro Football Conference Championships," and "College Football Championships." However, the app still lists the official names of the games and allows users who are at least 18 years old to bet on events like the AFC Championship and the Super Bowl.

With an upcoming leadership transition at the CFTC and speculation about potential shifts in crypto regulation and event contracts, the financial community is eagerly awaiting further guidance that could impact the cryptocurrency betting market.