TechFlow news — On January 14, according to Bloomberg, U.S. federal regulators are deciding whether to investigate the legality of Crypto.com's futures contracts that allow investors to bet on major sporting events, including the Super Bowl.
According to people familiar with the matter, the five-member Commodity Futures Trading Commission (CFTC) is voting on a measure to require a 90-day review of these contracts, though these individuals are not authorized to speak publicly. The agency does not have the authority to immediately halt trading; the review will extend beyond February 9—the day of the Super Bowl—but the commission may ban such contracts after completing its review.
The issue centers on whether listing these contracts on Crypto.com’s derivatives exchange in Chicago might violate gambling laws. The company followed legal procedures by notifying the CFTC of its plans on December 19 last year, two days before Christmas, to begin trading. However, the agency had no time to review the contracts as they were submitted just days before the holiday season and amid potential government shutdowns.
