A company that is changing the way the world mines bitcoin

Crypto Potato 2025-02-05 16:45:18

CFTC Crackdown: Robinhood Derivatives Forced to Withdraw Sports Event Contracts

Robinhood Derivatives announced that the Commodity Futures Trading Commission (CFTC) has requested it “not permit customers to access” sports event contracts. In response, Robinhood is suspending the rollout of its Pro Football Championship market, which had been introduced to approximately 1% of its users. CFTC Blocks Robinhood’s Sports Betting According to the official press release , the company said that customers who have already placed trades will have the option to either close their positions or see them through to resolution. Robinhood expressed disappointment with the decision, stating that it had been in regular communication with the CFTC regarding its intent and plans for the product. Robinhood maintained that it had taken necessary steps to advocate for balanced regulation in the futures and derivatives markets. This includes participating directly in a CFTC roundtable and providing written feedback to the watchdog. The financial services company, however, assured that “RHD will continue to collaborate with the CFTC as we work to roll out a more comprehensive event contracts platform later this year.” CFTC’s Increased Scrutiny The latest development emerged just a day after Robinhood launched sports events contracts in partnership with prediction market Kalshi. The product allowed users to trade on the outcome of the Philadelphia Eagles vs. Kansas City Chiefs Super Bowl game scheduled for February 9. This decision follows increased scrutiny from the Commodity Futures Trading Commission (CFTC), which is currently reviewing similar Super Bowl event contracts offered by Crypto.com and Kalshi. The agency is assessing whether these contracts meet derivatives compliance standards and safeguard against market manipulation. The CFTC has the authority to demand further documentation and could initiate enforcement actions or propose new regulatory measures. The suspension came amid broader regulatory tightening on event contracts, with the CFTC recently announcing plans for public roundtables on the issue. Crypto.com has maintained its confidence in the legality of its contracts, stating that it views the CFTC as the appropriate authority to ensure market integrity The post CFTC Crackdown: Robinhood Derivatives Forced to Withdraw Sports Event Contracts appeared first on CryptoPotato .