The US Commodity Futures Trading Commission (CFTC) is investigating Super Bowl markets provided by Crypto.com and prediction market Kalshi to assess their compliance with derivatives regulations. A CFTC spokesperson confirmed the review of these contracts, which started shortly after Crypto.com began trading these markets in December. The investigation comes as the commission, now under the leadership of Caroline Pham, seeks to probe emerging issues related to financial products. The CFTC has the authority to request more information from firms that self-certify their products, particularly to ensure they are not prone to manipulation and conform to existing regulations. While the CFTC cannot immediately stop trading, it may prohibit the contracts after a 90-day review period. There is significant activity on Kalshi, with over $2.4 million in trading volume regarding the Kansas City vs. Philadelphia Super Bowl matchup, along with bets on which companies will advertise during the game. The situation reflects a growing interest in prediction markets that allow global betting on various topics, including sports and other events.

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