The Commodity Futures Trading Commission (CFTC) has launched inquiries into Crypto.com and Kalshi Inc. regarding their recently introduced event contracts tied to the Super Bowl. The CFTC is reviewing these contracts to ensure they meet regulatory requirements and are not easily manipulable.
Crypto.com has expressed confidence in the legality of its event contracts and is prepared to cooperate with the CFTC’s inquiries. The company believes the CFTC is the appropriate regulator to ensure market integrity and prevent manipulation across all states.
Market Implications
The CFTC’s probe into these event contracts could have significant implications for the emerging market of sports-related derivatives. If the CFTC finds issues with the contracts, it could lead to enforcement actions or new regulations, potentially impacting the growth and adoption of these products.
The entry of major players like Crypto.com and Robinhood into this space highlights the potential for event contracts as a new asset class. However, the regulatory uncertainty surrounding these products may deter some investors and traders from participating until clearer guidelines are established.
Tags: CFTC, Crypto.com, Kalshi, event contracts, sports derivatives, regulation
Source: https://bitcoinist.com/cftcs-inquiry-crypto-com-kalshi-under-scrutiny/
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