Federal regulators are deciding whether to investigate the legality of trading in Crypto.com futures contracts that allow investors to bet on who will win major sporting events, including the Super Bowl.
The five-member Commodity Futures Trading Commission (CFTC) is voting on a measure to require a 90-day review of the contracts, according to people familiar with the matter who were not authorized to speak publicly. The agency does not have the power to immediately halt trading, and the review will last until after Super Bowl Day on Feb. 9, but the commission could ban such contracts after the review is complete.
At issue is whether the contracts, which were listed on Crypto.com’s Chicago-based derivatives exchange, could violate gambling laws. The company followed legal procedures, notifying the CFTC on Dec. 19 of its plans to start trading two days before Christmas. But the agency didn’t have time to review the contracts then because they were filed days before the holiday and the government could be shut down. (Bloomberg)