The Commodity Futures Trading Commission (CFTC) is investigating Crypto.com and Kalshi concerning sports-related prediction market contracts, particularly whether these contracts qualify as 'gaming' under the Commodities Exchange Act. This investigation stems from the CFTC's legal stance that if sports do not constitute gaming, they may lack authority to prohibit these platforms from self-certifying their contracts. Crypto attorney Aaron Brogan raises pivotal points on this issue, referencing a previous ruling regarding election contracts, and highlighting that the term 'gaming' historically aimed to regulate sports betting. While Brogan suggests that textual arguments could be made to classify these prediction markets differently, he also notes that the current CFTC climate, potentially leaning towards a more permissive approach due to recent leadership changes, may influence the outcome of the investigation.

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