CFTC Opens Investigation into Crypto.com

According to crypto lawyer Aaron Brogan, the recent investigation into Crypto.com and Kalshi’s event contracts revolves around a key question: whether or not these contracts fall under the Commodities Exchange Act’s definition of sports “gaming.”

Bloomberg has reported that the Commodity Futures Trading Commission (CFTC) is looking into contracts for Super Bowl events on these two platforms.

Brogan noted that if sports are not considered gaming, the CFTC may not have the authority to prohibit Crypto.com and Kalshi from self-certifying these contracts. However, the issue is more complex than it appears on the surface.

Brogan pointed to a previous ruling in the case of Kalshi, which stated that their election betting contracts did not fall under the CFTC’s restricted categories.

In this ruling, the judge defined “gaming” as playing games or playing games for stakes, and referenced a lawmaker’s statement during the drafting of the Commodities Exchange Act that the rule against gaming was intended to cover sports betting.