Will Kalshi and Crypto.com Survive?
Commodity Futures Trade Commission (CFTC) has begun to investigate the prediction market -related prediction market crypto.com Kalshi focuses on whether these contracts should be classified as “games” according to the “Commodity Exchange Law”. This detection, first of all Report Bloomberg’s author may affect future sports gaming and event -based contracts.
A big question: Is sports betting “Game”?
The key question of this survey is whether the sports prediction market is the definition of “games”. According to Aaron Brogan, an encrypted lawyer, if sports gaming is regarded as a game illegal, CFTC may have no right to prohibit Crypto.com and Kalshi with such contracts. However, past legal discussions have shown that sports gaming is included in the category of legal restrictions.
Brogan mentioned a past ruling of Kalshi election gaming contract. The judge defined the game as “playing games for gambling.” He pointed out that although the ruling may challenge Kalshi’s sports contract, it is not legally binding. The explanation is still worthy of discussing BAT, and different judges can look at the matter in different ways.
The changing leaders may affect the regulations
Republican Party Caroline Pham led CFTC, and regulatory scenarios may change. Many people think that her leadership ability can bring easier ways, especially for activity contracts for the retail industry. The committee led by the Democratic Party had doubts about such contracts and actively struggled with platforms such as Kalshi to provide election -based bets.
However, the degree of such policy transformation is still uncertain. If CFTC is still undergoing a exercise contract at the Kalshi meeting, it indicates that the agency may continue to take a strict position on certain events -based markets.
Kalshi had previously withdrawn two documents related to sports, but a new contract that was certified by me later focused on audience sports. On January 24, it launched the super bowl market of the “Kansas City and Philadelphia” game, which has seen a $ 2.5 million transaction. In addition, it also introduced a contract that expected to advertise during the game, attracting more than 1.5 million US dollars.
What is the next step of encrypted gaming?
If CFTC classifies the exercise contract as a game, then platforms such as Kalshi and Crypto.com may face regulatory issues or completely prohibited in their predicted market. On the other hand, if the court tends to explain a wider explanation, these platforms may have a large basis for continuing operation.
Any decision on its legitimacy is only made after the super bowl on February 9. At present, with the debate of regulatory agencies and legal experts, the future of sports forecasting markets is unreasonable, whether these contracts should be allowed in accordance with US law.
