Crypto.com has rejected the Commodity Futures Trading Commission’s request to pause all trading for its sports contracts as the commission decides to review whether they violate any regulations on gaming.
According to a recent Bloomberg report, the CFTC has asked the crypto exchange to put all trading of sports-related contracts on hold as the commission members aim to conduct a review on whether the contracts violate any regulations.
In response, a spokesperson of Crypto.com said in a statement that the firm has rejected the agency’s request to halt all trading for its long-awaited sports contracts. The firm expressed disappointment at the agency’s approach that seems to contradict the incoming Trump administration’s stance on trade and digital assets.
“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,” the spokesperson said.
According to the report, the CFTC wants Crypto.com to suspend all trading for their sports-related contracts, which were initially launched back in late December, so that it could conduct a review that could potentially ban trading for the contracts if they fail to meet requirements.
As previously reported by crypto.news, Crypto.com had notified the CFTC of their plans to release future contracts trading that lets investors bet on the outcome of major sports events prior to its official launch. However, the agency did not get the chance to review these contracts before they were released two days before Christmas.
The CFTC has been known to put betting contracts under a lot of scrutiny, specifically those that bet on the outcome of sports matches, wars, assassinations, Grammy wins, and other activities not related to the public interest.
Aside from Crypto.com, Polymarket also lets traders bet on Super Bowl match outcomes as well as other major sports matches. Although, it claims that these contracts are unavailable for its users based in the U.S. Last December, the CFTC suspended contract trading on Kalshi and other exchanges regarding whether the alleged assassin of UnitedHealthcare CEO Brian Thompson, would plead guilty to murder charges.
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