CFTC Questions Crypto.com and Kalshi on Super Bowl Derivatives Contracts

The Commodity Futures Trading Commission (CFTC) is questioning Crypto.com, a Singapore-based crypto exchange, and Kalshi, a prediction market, about the compliance of their derivatives-based Super Bowl sports events contracts, as reported by Bloomberg.

On Dec. 23, 2024, Crypto.com launched a derivatives platform allowing users to wager on the outcome of Super Bowl LIX, a game between the Kansas City Chiefs and Philadelphia Eagles scheduled for Feb. 9, 2025. Crypto.com co-founder and CEO Kris Marszalek stated that its Sports Events Trading product was a regulated platform at the time of launch.

Kalshi allows users to trade contracts on event outcomes and gained popularity ahead of last year’s presidential election. The CFTC contended that Kalshi’s betting on the election compromised integrity; however, a federal court denied the CFTC’s motion against Kalshi’s election betting. The CFTC expressed intentions to reverse that ruling, as previously reported by The Block.

The Block reached out to the CFTC for comments.

Additionally, on the same Monday, the crypto-friendly trading app Robinhood chose Kalshi to facilitate Super Bowl derivatives contract trading. Robinhood’s derivatives platform had previously allowed trading on the outcome of the 2024 presidential election.