The Commodity Futures Trading Commission (CFTC) is set to vote on a 90-day review of Crypto.com's new futures contracts, which enable users to wager on major football games.
Crypto.com's New Offering
According to a Bloomberg report on January 14, the five-member federal commission is debating whether the contracts, launched on Crypto.com’s Chicago-based derivatives exchange, violate laws governing betting contracts. The CFTC has historically opposed contracts tied to sports matches, wars, or other events deemed outside the public interest.
Crypto.com's Criticism
Crypto.com launched its sports futures contracts on January 7, having notified the CFTC on December 19, but the late notification prevented a review before the holiday release. The early launch was influenced by concerns over a potential government shutdown affecting Super Bowl trading opportunities.
U.S. Lawmakers' Reaction
Adding to the growing scrutiny of betting markets, U.S. lawmakers recently urged the CFTC to ban wagering on the 2024 presidential election outcomes.
In conclusion, Crypto.com’s new futures contracts have drawn regulatory scrutiny and sparked debate among lawmakers.
