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CFTC Says Sports Betting Laws An Issue for Prediction Markets

The article from Covers.com discusses Kalshi's ongoing efforts to expand its event contract offerings, which include sports betting and cryptocurrency markets, amidst regulatory scrutiny from the Commodity Futures Trading Commission (CFTC). Kalshi, a startup focused on creating a regulated exchange for event contracts, has faced challenges due to concerns over the potential for manipulation and the suitability of such contracts for retail investors. The CFTC has expressed reservations about approving these contracts, particularly those involving sports betting and crypto, due to fears of market manipulation, insider trading, and the complexity of these markets. A roundtable discussion was held in February 2025 to address these issues, involving industry experts, regulators, and Kalshi representatives. The discussion highlighted the need for robust regulatory frameworks to ensure market integrity while allowing innovation in financial products. Despite the concerns, Kalshi remains optimistic about finding a path forward that satisfies both regulatory requirements and market demands.

Read the Full Covers Article at:
[ https://www.covers.com/industry/kalshi-cftc-crypto-sports-betting-event-contracts-roundtable-concerns-february-2025 ]