The CFTC are voting on whether Crypto.com futures contracts, that let investors bet on who will win major football games including the Super Bowl, should be subject to a 90-day review.
According to a Bloomberg report published on Jan. 14, the five-member federal commission are considering whether to probe Crypto.com over future contracts trading that lets investors bet on the outcome of major sports events, according to sources close to the matter.
The CFTC have yet to determine whether the contracts listed on the firm’s Chicago-based derivatives exchange violate the laws laid out regarding betting contracts. The agency has long been opposed to contracts that let investors bet on the outcome of sports matches, wars, assassinations and other activities that divert from the public interest.
Crypto.com announced the release of their sports contracts on Jan. 7, after following legal procedures and alerted the CFTC on Dec. 19 about its upcoming contracts launch just two days before Christmas. However, the agency did not have time to review the contracts as they were submitted before the holidays.
Initially, the firm did not plan to launch their new product during the holidays but decided to move forward due to fear of a long government shutdown that might cause the firm to miss out on trading opportunities for the Superbowl, said a Crypto.com spokesperson to Bloomberg.