Is Kalsi’s Super Bowl Event Mark A Turning Point In Crypto-Based Sporting Events?

The world of sports-based trading has been growing rapidly without regulatory breaks. However, things are about to change for real. Commodity Futures Trading Commission or CTFC has launched a mass-scale investigation of a prominent event contract.

CTFC called Crypto.com and Kalshi to question their Super Bowl events. The regulatory body suspects malpractice and regulatory cuts in the event. As a result, the body called the officials of the two organizations for rigorous questioning.

Interestingly, another retail trading giant, Robinhood, also launched its sports-based trading event. Therefore, market experts are waiting with bated breath to see what the future holds for this trading side.

CTFC Probe 

This investigation by CTFC primarily focuses on one singular point: whether these sports trading events qualify as gaming or not. The regulatory body is primarily looking at whether these trading events are susceptible to market manipulation.

A CTFC spokesperson stated, “We are continuing to review the contracts in accordance with our regulations.” Moreover, the spokesperson also stated that the regulatory body is looking to hold more public roundtables to understand the emerging concerns.

Despite the regulatory scrutiny, Crypto.com has maintained that its operations are legitimate and follow regulations. Here is what the spokesperson of Crypto.com has to say about the regulatory checks, “We firmly believe in the legality of our events contracts and believe the CFTC is the appropriate regulator.”

The Growing World Of Event Contracts 

Even though the world of crypto-based sporting events has been shaken by this investigation, the market is still growing. Robinhood, a renowned name in this industry, just started with its crypto-based sporting events. 

What is interesting is that this new player will be using Kalshi’s systems to operate. This new platform will supposedly be “Available in all 50 states through KalshiEX LLC, a regulated exchange, the Pro Football Championship event contract gives eligible customers the power to trade on the outcome of the big game.” Therefore, this shows that the community is gradually growing.

The Final Thought: What The Future Holds 

The most notable aspect of these developments is the timing. These announcements came just days after major political changes in the US. As a result, there can be some major changes in the long run.

Currently, the primary concern of CTFC is whether sports-based crypto events should fall under gaming or not. As a result, this regulatory scrutiny might be a major milestone for this community.

Moreover, the White House has implemented a crypto task force to examine regulatory grey areas. This organization will be headed by Mark Uyeda and can be a turning point for crypto and crypto-based events.