The prediction market is booming, but CFTC pays attention. Is there a possibility that severe surveillance will come for event -based trading while Crypto.com and Kalshi are reviewing?
According to Bloomberg, the Commodity Futures Transactions Committee has scrutinized Crypto.com and Kalshi Inc. carefully, clarifying how the newly released Super Bowl Event contract is consistent with US Derivative Regulation. Masu.
This high surveillance will occur shortly after the announcement on January 27. In this announcement, the CFTC leadership promises to monitor new problems in the derivative market, and event -based trading products are straightforward.
Crypto.com, which operates US -based derivative replacements, aimed to launch a Super Bowl -related contract at CFTC by December 19 by December 19th.
However, short notifications have left a minimum of time to review products before Christmas holidays and concerns about the possibility of government closure.
A few weeks later, CFTC has been succumbing to regulatory authorities and demanding additional information from companies that self -certify financial provision.
Under existing derivative methods, self -certified companies must demonstrate that the product is not easily operated.
The CFTC review process does not give immediate authority to stop transactions, but agencies can take execution measures later or concerns concerns.
A CFTC spokeswoman confirmed that “we continue to review the contract in accordance with regulations while keeping the door open for potential execution or new rules.”
Crypto.com is still solid in protecting its stance. “We believe that we strictly believe in the legal nature of the event contract, and we believe that CFTC is an appropriate regulatory authorities for all 50 states to have the federal market consistency, operating management, and the possibility of product use. Masu, the company spokesman told Bloomberg.
Interestingly, Crypto.com has previously chose to withdraw the two sports -related filing under regulated scrutiny and later to self -certify a new contract for sports and related industries.
Meanwhile, KALSHI Inc. launched the Kansas City vs. Philadelphia Super Bowl Market on January 24.
In addition, the company has introduced a contract, and has been able to bet on brands that may advertise in a super bowl, drawing out more than $ 1.5 million.
Among them, more widespread predictable market industries have volatility.
During the 2024 US presidential election cycle, polimets, the largest distributed prediction market, processed more than $ 2.5 billion, and the election -related bets have increased rapidly.
However, by January 2025, the amount has decreased to about $ 1.24 billion, reflecting the cooling profit after the election's hype has calmed down.
Continuous review of CFTC consists of Robinhood Markets's entry into the event -based trading. On February 3, Robinhood announced that a derivative client would be able to trade sporting events through exchanges of Kalshi.
“We are aware of the opportunity for customers to provide better services because new asset classes like event contracts converge throughout the market, news, sports, and entertainment,” said Robin Food.
For the 90 -day review process, these contracts cannot be stopped immediately, but we have the authority to prohibit them later. Since the Super Bowl is set on February 9, a decision will be made after the event.
