The U.S. Commodity Futures Trading Commission (CFTC) is investigating the Super Bowl markets of Crypto.com and Kalshi, seeking clarification on the legality of these event contracts.
Crypto.com notified the CFTC about launching trading on December 23, but the commission has not had time to review it due to the holiday season. Caroline Pham, head of the CFTC, stated that the review process takes at least 90 days, meaning the CFTC cannot stop trading before the Super Bowl on February 9, but may intervene afterward.
Kalshi opened the Super Bowl betting market on January 24, attracting over $2.4 million in transactions. Robinhood Derivatives has also partnered with Kalshi to expand this market. In the context of a rapidly developing prediction market thanks to blockchain, the CFTC is tightening oversight to ensure compliance with derivatives regulations.
The CFTC's investigation into the Super Bowl contracts of Crypto.com and Kalshi shows that the agency is increasingly tightening oversight of event-based prediction markets. Although it cannot intervene immediately, the CFTC may impose control measures after the Super Bowl. As the prediction market continues to grow due to blockchain technology, the actions from the CFTC will play a crucial role in shaping regulations and the future of this field.