CoinInsight360.com logo CoinInsight360.com logo
A company that is changing the way the world mines bitcoin

WallStreet Forex Robot 3.0
Crypto Potato 2025-02-04 20:19:35

CFTC Probes Crypto.com and Kalshi Over Super Bowl Event Contracts

Crypto.com and Kalshi are under scrutiny from the Commodity Futures Trading Commission, which has asked both firms to clarify how their recent Super Bowl event contracts meet derivatives compliance requirements. The CFTC is legally empowered to demand further documentation from companies that self-certify financial products, focusing on safeguards against manipulation and adherence to regulatory obligations. Following its review, the commission could initiate enforcement measures or propose new regulatory frameworks. CFTC Tightens Grip on Crypto Event Contracts The latest development comes a week after the CFTC announced plans to host public roundtables focused on emerging issues in derivatives markets. During this, event contracts were among the key topics. In response to regulatory scrutiny, Crypto.com maintained its confidence in the legality of its event contracts, stating that it views the CFTC as the appropriate authority to ensure market integrity and prevent manipulation. In a statement to Bloomberg, the popular exchange revealed that it will continue offering these contracts while cooperating with the agency’s review process. In January, regulators at the CFTC voted to launch a special review of Crypto.com’s sports contracts to evaluate if they qualify as gaming, a designation that brings additional regulatory scrutiny related to the public interest. Crypto.com has since pulled the two contracts from the review process and instead self-certified a new one linked to spectator sports and associated industries. It is still unclear if the CFTC intends to resume its review of the initial contracts. CFTC’s new inquiry surfaced just a day after Robinhood Derivatives launched event contracts for the upcoming Pro Football Championship, which allowed eligible customers to trade on the outcome of the game between Kansas City and Philadelphia. These contracts are available nationwide through the regulated exchange KalshiEX. Scrutiny on Polymarket Traders worldwide use prediction markets to bet on various events, some of which use blockchain technology. One prominent example is Polymarket, which processed billions in bets during the US election last November. The CFTC had previously indicated that it was paying close attention to Polymarket and other offshore cryptocurrency betting sites. A few months later, the Federal Bureau of Investigations (FBI) raided the Manhattan apartment of Polymarket CEO Shayne Coplan. The post CFTC Probes Crypto.com and Kalshi Over Super Bowl Event Contracts appeared first on CryptoPotato .

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.