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Crypto.com and Kalshi are under scrutiny from the Commodity Futures Trading Commission, which has asked both firms to clarify how their recent Super Bowl event contracts meet derivatives compliance requirements.
The CFTC is legally empowered to demand further documentation from companies that self-certify financial products, focusing on safeguards against manipulation and adherence to regulatory obligations. Following its review, the commission could initiate enforcement measures or propose new regulatory frameworks.The latest development comes a week after the CFTC announced plans to host public roundtables focused on emerging issues in derivatives markets.
In January, regulators at the CFTC voted to launch a special review of Crypto.com’s sports contracts to evaluate if they qualify as gaming, a designation that brings additional regulatory scrutiny related to the public interest. Crypto.com has since pulled the two contracts from the review process and instead self-certified a new one linked to spectator sports and associated industries. It is still unclear if the CFTC intends to resume its review of the initial contracts.
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