CryptoCom Under Probe By US CFTC Over Super Bowl Event Contracts
Highlights
- The US CFTC is looking into CryptoCom and Kalshi
- Specifically, the probe looks into the Super Bowl event contracts on both platforms
- Both CFTC and SEC are overhauling approaches to key market policies
The US Commodity Futures Trading Commission (CFTC) is conducting a probe into digital assets trading platform CryptoCom and predictions marketplace Kalshi Inc over their launch of Super Bowl event contracts. As reported by Bloomberg, the probe seeks to clarify whether the offerings comply with existing derivatives regulations.
US CFTC Unsure About CryptoCom Super Bowl Bets
Per the Bloomberg report, this probe into the platforms follows from the markets regulator’s statutory powers to seek more information on outfits that self report their offerings. Among the many things the CFTC is looking at is whether these Super Bowl event contracts are susceptible to manipulation.
A CFTC spokesperson revealed that its probe into the platforms is merely in line with its regulations. Earlier in January, the regulator placed the CryptoCom Super Bowl events contract under review. Recall that the crypto exchange launched the Super Bowl predictions market in December. This launch comes amid controversial take between the CFTC under Rostin Behnam and the broader market.
Based on the outcome of the probe, the regulator could chose to ban the Super Bowl offering from CryptoCom. With the probe still at the early stages, the Bloomberg report notd that the Kalshi Super Bowl offering does not have this clause yet.
US CFTC and Push For Regulatory Clarity
With the emergence of US President Donald Trump, he appointed Caroline Pham as Chair of the CFTC. Recognized as a pro-crypto regulator, many anticipated reforms in how the regulator handles the industry.
With betting markets like the Super Bowl contracts one of the lingering issues with limited clarity, Pham sought to solve these issues. Shortly after her appointment, she unveiled plans to organize a public Roundtable on crypto to address some of the industry painpoints.
Market experts believe that these request for information from CryptoCom and Kalshi are strategic steps toward achieving this goal.
Beyond CryptoCom: SEC is to Watch
For the crypto industry, proponents have always advocated for the US CFTC to take charge of key regulatory trends. However, the regulatory trends at the Securities and Exchange Commission (SEC) is also changing at the moment.
The White House named Mark Uyeda as the acting Chair of the commission pending the confirmation of Paul Atkins. As the gatekeeper, Uyeda has launched a crypto task force to address regulatory grey areas.
With the shift in policy and the willingness to collaborate with the crypto industry, proponents are convinced the needed change is here.
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