CFTC targets Crypto.com! Super Bowl betting may involve illegal activities, on-chain sports gambling faces a crucial battle

Crypto.com's on-chain sports betting platform is facing scrutiny from the CFTC, and its legality and results could reshape the regulatory model of the U.S. gaming industry and inform the on-chain process of the global gaming market. (Synopsis: Bloomberg revelation: Trump will nominate a16zencryption policy director to take over as CFTC chairman, who is Brian Quintenz?) (Background added: The Trump administration will let the "CFTC-led cryptocurrency regulation" weaken the SEC, and the encryption daddy becomes the encryption czar's favorite) The Commodity Futures Trading Commission (CFTC) is considering Crypto.com cryptocurrency trading platforms The launch of on-chain sports event futures contracts is subject to a 90-day review, and these contracts allow investors to bet on the outcome of major sporting events, including the upcoming Super Cup. (Similar to Polymarket, currently focusing on sports events) Decentralization prediction platform Polymaket became famous overnight in the US election last December, so Crypto.com also launched a new sports event prediction platform late last year, allowing US users to bet on-chain on the results of specific sports events in an attempt to seize the prediction market. Extended reading: Crypto.com Launch of sports betting platform in the United States, rush to attack Polymarket prediction market CFTC will review whether it violates gaming laws According to people familiar with the matter, the CFTC review focuses on whether Crypto.com contracts listed on the Chicago exchange violate US gaming laws. Crypto.com had submitted a contract plan to the CFTC on December 19, 2023, and launched trading two days before Christmas, but the CFTC was unable to review it immediately due to the close holiday time of the submission. The review will continue beyond the Super Bowl on February 9, 2024, and the CFTC may ban the sale if the contract does not meet the requirements. Market and regulatory challenges Unlike traditional bookmakers, Crypto.com offers nationwide services and earns fees primarily through matching, rather than paying out at its own risk, which could put competitive pressure on traditional sportsbooks such as FanDuel and DraftKings in the future. Crypto.com spokesperson said: The company has not been notified of the pending action. It is disappointing that current and outgoing CFTC executives will consider this action while not allowing incoming CFTC executives to decide how the free market works under their management. The CFTC has long been conservative about derivatives trading involving sensitive events such as sports, politics, and war. In 2023, another exchange, Kalshi Inc., stopped trading under regulatory pressure for launching contracts involving criminal cases. If the CFTC can pass the review this time and officially legalize the game on the chain, it may bring a demonstration effect to the world. Regulatory Outlook: New Executives Influence Future Policy At present, the CFTC's regulation of such derivatives trading is not clear. CFTC Chairman Rostin Behnam said: "You will find out what is legal, what is illegal, what is allowed, and what is not allowed. These contracts may blur the legal boundaries of the market, which in turn affects the transparency and regulation of the derivatives market. However, Behnam is expected to resign as chairman on January 20, 2024, and leave the committee on February 7. Whether the CFTC will be more open to such contracts in the future will be followed by who the new chairman is. Related reports Bloomberg broke: Trump will nominate a16zencryption policy director to take over as CFTC chairman, who is Brian Quintenz? Crypto.com Launch a sports event betting platform in the United States and seize the Polymarket prediction market The Trump administration will let the "CFTC dominate cryptocurrency regulation" weaken the SEC, and the encryption daddy becomes the popular candidate for the encryption czar "CFTC targets the Crypto.com! Super Cup betting may be illegal, sports events on-chain game to meet the key battle" This article was first published in BlockTempo "Dynamic Trend - The Most Influential Block Chain News Media".