Kalshi, Crypto.com Super Bowl Contracts Under Regulatory Scrutiny

The Commodity Futures Trading Commission launched an inquiry on Monday into Crypto.com and Kalshi on how the companies' Super Bowl event contracts comply with derivatives regulations.

The Details: According to a Bloomberg report, the CFTC has requested additional information from Kalshi and Crypto.com, including evidence that the products are not susceptible to manipulation and comply with regulations. 

The CFTC will then evaluate the responses before deciding on any enforcement actions or begin drafting a new rule.

"We are continuing to review the contracts in accordance with our regulations," a CFTC spokesman told Bloomberg. 

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The CFTC put Crypto.com's sports contracts under a special regulatory review in January to determine if they qualified as gaming. The CFTC did not place Kalshi's sports contracts under review at the time. 

The CFTC is expected to vote by mid-April on whether to bar the contracts and sports contracts continue to trade in the meantime. 

The CFTC's latest inquiry comes as Robinhood Markets, Inc. HOOD announced on Monday that its clients can access sports contracts through the Kalshi exchange. 

"With an emerging asset class like event contracts, we recognize an opportunity to better serve our customers as their interests converge across the markets, news, sports and entertainment," Robinhood said in a statement.

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