CFTC Launches Investigation into Crypto.com and Kalshi's Super Bowl Betting Legality

The U.S. Commodity Futures Trading Commission (CFTC) is investigating how Super Bowl-related contracts offered by Crypto.com and prediction market platform Kalshi could affect derivatives regulation.
In an interview with Bloomberg on the 3rd (local time), a CFTC spokesperson said, "The agency is investigating whether the contract in question complies with regulations."
On January 14, Bloomberg reported that the CFTC was investigating the legality of the Super Bowl-related futures contracts launched by Crypto.com.
Crypto.com, which operates a derivatives exchange in the United States, notified the CFTC on December 19 last year that it would begin trading the contract on December 23.
However, at the time, the CFTC reportedly lacked time to immediately consider this due to the holiday season and the threat of a government shutdown.
According to reports, Caroline Pham
The CFTC, led by Robert Pham, said it could not immediately halt Crypto.com and Kalshi's trading of Super Bowl-related contracts.
Because the review takes at least 90 days, trading could continue after the Super Bowl on Feb. 9. But the CFTC could ban the contracts after that.
The investigation is a follow-up to the Jan. 27 announcement by the CFTC's new leadership that it would take a closer look at emerging issues in the derivatives markets.