Crypto.com has rejected the US Commodity Futures Trading Commission's (CFTC) request to halt trading of sports contracts for compliance review.
CFTC Request to Suspend Trading
According to Bloomberg, CFTC asked Crypto.com to halt trading of sports-related contracts to review compliance with regulations. These contracts were launched in late December, and the CFTC is concerned they may violate gaming laws.
Crypto.com's Response
A Crypto.com spokesperson stated the company rejects the agency's request and will continue supporting customers with uninterrupted sports contract trading across the nation. The company expressed disappointment with the CFTC's approach and stated its intent to cooperate with the commission ongoing.
Situation Analysis and Other Examples
The CFTC often scrutinizes contracts on sports, wars, awards, and other occurrences outside public interest. Additionally, Polymarket also offers betting on sports match outcomes, restricting these contracts for US users. Previously, CFTC temporarily suspended trading on other exchanges like Kalshi for matters unrelated to public interest.
The Crypto.com situation illustrates regulators' efforts to oversee cryptocurrency exchanges' impact on the sports betting market. The commission continues to evaluate new products for regulatory compliance.
