The Commodity Futures Trading Commission (CFTC) has notified the North American Derivatives Exchange, Inc. (Nadex) d/b/a Crypto.com it will initiate a review of the two sports contracts that were self-certified and submitted to the CFTC on Dec. 19, 2024.
As described in the submissions, the contracts are cash-settled, binary contracts.
The contracts are based on the following underlying events:
- The association participant that is a title holder for the association title event for a given calendar year (Title Event). The association participant refers to any of the association participants in a given association, such as the National Football League, the National Hockey League, and/or the National Collegiate Athletic Association.
- The hometown that hosts a celebration, such as a parade hometown celebration, for the association participant that is the title holder for an association in a given calendar year on a given date in recognition of the outcome of the Title Event.
The CFTC determined the contracts may involve an activity enumerated in CFTC Regulation 40.11(a) and section 5c(c)(5)(C) of the Commodity Exchange Act. As required under CFTC Regulation 40.11(c)(1), the CFTC has requested that Nadex suspend any listing and trading of the two sports contracts during the review period.
