“The CFTC has questioned the legality of Crypto.com’s proposed futures contracts, which users use to bet on sports events. This was reported by Bloomberg with reference to anonymous sources. Five members of the Commission will vote on opening a 90-day investigation into violations of gambling legislation. A Crypto.com representative told Bloomberg reporters that the agency had not warned the company of its plans. “It is disappointing that the current, soon-to-be-departing leadership of the CFTC is considering something like this […]”, — write: businessua.com.ua
CFTC doubted the legality of futures contracts offered by Crypto.com, with the help of which users make bets on sports events. This is reported Bloomberg publication with reference to anonymous sources.
Five members of the Commission will vote on opening a 90-day investigation into violations of gambling legislation.
A Crypto.com representative told Bloomberg reporters that the agency had not warned the company of its plans.
“It is disappointing that the current and soon-to-be-departing leadership of the CFTC is considering such action without allowing [наступникам] determine the format of work under their administration,” Crypto.com commented.
On December 19, 2024, the company informed the Commission of its intention to launch 10 futures contracts on the outcome of sports events, including the Super Bowl football championship.
Officially, CFTC members are given one business day to review such applications, after which trading begins. In the case of Crypto.com, the Commission did not have time to process the documents and give an answer due to the Christmas holidays, so the contracts were launched the following Monday.
According to a company representative, the team did not want to release the new tools “in the middle of the holidays” but had to do so in order to open the bidding in time for the start of the Super Bowl on February 9.
Crypto.com offers “sports futures” on its Chicago-based derivatives trading platform for $100. There is a limit of 2,500 contracts for individual clients, and 250,000 for market makers.
“You will see the blurring of the line between what is legal, what is illegal, what is allowed, what is unacceptable. I think it’s a very long way from the origins of what the CFTC does and what the derivatives markets are supposed to be,” said the agency’s current chairman, Rostin Benham.
Journalists noted that under his leadership, the Commission did not finish work on the rules defining “problematic” topics in futures contracts on the outcome of events from the world of politics, sports, armed conflicts and other situations that “do not correspond to public interests.”
This task may be inherited by the next CFTC administration, which is expected to take a more liberal approach to the regulation of crypto exchanges.
Benham will leave the post of chairman on January 20 and leave the Commission on February 7, 2025. There is no word yet on his successor, but Bloomberg sources suggest that he will be a16z Crypto’s director of policy, Brian Quintenz.
We will remind, in October 2024, Crypto.com filed a lawsuit against SEC in response to Wells’ message.
The source