Are “sports trading markets” the same thing as regulated sports betting sites? That’s the question at the center of an ongoing dispute between Crypto.com and the US Commodity Futures Trading Commission. It’s also a question that will likely be answered very in the wake of Crypto.com’s total rejection of the US Commodity Futures Trading Commission’s request that it halt sports trading ahead of the Super Bowl will its legal status is reviewed.
Crypto.com opened its sports trading markets at the end of December, joining a wave of unregulated gaming-like products that skirt the stringent regulations applied to traditional sportsbooks. Crypto.com co-founder and CEO Kris Marszalek described his compay’s sports betting platform recently in comments reported on by SBC Americas saying, “This unique financial product allows users to trade their prediction on the outcome of a sports event. It’s a fundamentally new concept for sports, and we’re thrilled to be the first regulated platform in the U.S. to offer it to our users.”
Federal regulators are less certain about the status of sports trading and have asked for a 90-day freeze on sports trading while the laws are reviewed. This delay would cause Crypto.com to miss out on Super Bowl betting action; something the company is very reluctant to do.“It is disappointing that the current and imminently departing CFTC leadership would take this action while not allowing the incoming CFTC leadership to determine how free markets operate under its administration. The majority’s decision to apply this rule contradicts recent Federal Court rulings and conflicts with the current Commission’s own statement set forth in its recent rule proposal,” a Crypto.com spokesperson told LegalSportsReport.com reently.
In all likelihood, Crypto.com is betting that the incoming administration will take a friendlier stance towards unregulated cryptocurrency products and will move forward without delay.