The US Commodity Futures Trading Commission (CFTC) has pushed back against Super Bowl event contracts launched by the Exchange Crypto.com and the Retail Betping Market Kalshi.
The Retail trading giant Robinhood announced on Monday that it was planning to roll out a prediction market for the Super Bowl on Kalshi.
The company declined that announcement the next day and noted that the CFTC had asked that the company ‘did not allow customers to access’ sporting events contracts.
Explains Robinhood,
“While we continue to work with the CFTC to understand their concerns, we suspend the rollout of the Pro Football Championship Market. We have rolled out this product for about 1% of our customers, and for those who have already placed transactions, we are planning to offer the option to close their positions or bring them to resolution.
We are disappointed about this result, especially in view of the fact that we regularly communicate with the CFTC about our intention and plans to offer this product. We have also taken steps to argue for balanced regulations in the futures and derivatives markets, including direct participation of a CFTC tour table, give written feedback to the CFTC and generally in favor of the economic benefits of event contracts.
Robinhood derivatives will continue to work with the CFTC while we work to roll out a more extensive event contract platform later this year. “
The CFTC also announced last month that it investigated two sports contracts from Crypto.com, and noted that the contracts could include gaming activity that is prohibited by raw materials instructions.
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