Crypto.com Rejects CFTC Request to Halt Sports Contract Trading

Crypto.com has refused the Commodity Futures Trading Commission’s (CFTC) request to temporarily suspend all trading for its sports contracts, pending a regulatory review. According to a recent report, the CFTC asked the cryptocurrency exchange to pause trading for its sports-related contracts, which were launched in late December.

CFTC Review and Crypto.com’s Response

The CFTC aims to review whether the contracts comply with regulations on gaming. In response, a Crypto.com spokesperson stated that the company rejected the agency’s request to halt trading, citing disappointment at the CFTC’s approach. The spokesperson emphasized that Crypto.com will continue to support customers and facilitate trading of its sports title event contracts without interruption.

“We remain committed to working with the CFTC and will continue to support our customers and the trading of our sports title event contracts in all 50 states without interruption while we review the CFTC’s notification.”

Crypto.com’s sports contracts allow users to bet on the outcome of major sports events, such as professional football conference championships, bowl games, and college football championships. The company has notified the CFTC of its plans to offer these contracts but did not wait for regulatory approval before their launch.

CFTC Scrutiny of Betting Contracts

The CFTC has a history of closely scrutinizing betting contracts, particularly those that involve sports matches, wars, assassinations, and other activities not related to public interest. Other exchanges, such as Polymarket, also offer similar contracts, although they claim these are unavailable to US-based users.

The CFTC has taken action against other exchanges in the past, including suspending contract trading on Kalshi and other platforms. The regulatory body’s review of Crypto.com’s sports contracts will likely be closely watched by the cryptocurrency community.

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