Less than just one day after the Super BOWL betting contract, Robinhood was closed at the request of CFTC.
On February 4, Robinhood selected a Plug for the Super Bowl betting contract a day after the launch at the request of the US Product Futures Trading Commission.
As regulators are cautious about event -based trading products, especially products related to major sports events, movements occur.
Partnership with the prediction Market platform Kalshi was released on February 9, the February 9 SUPER BOWL match between Philadelphia Eagles and Kansas City Chiefs.
Only about 1%of Robinhood customers were able to access the contract before stopping. Those who have already bets can close their positions or see them through agreements, but new transactions are not allowed.
Robinhood, who was frustrated with the transition of the case, tweeted in a tweet that he had “communicated regularly” and was disappointed with the results.
The company did not disclose the exact reasoning of CFTC’s intervention, but the decision is made in the regulatory regulatory investigation of the event -based contract.
Two days ago, the institution began inquiries about Crypto.com and Kalshi and questioned whether his Super Bowl Agreement had observed derivatives.
Robinhood is not new to event -based trading. In October 2024, the company moved to space for the first time with a contract related to the US presidential election results.
The launch followed a court ruling in favor of Calci, which challenged CFTC’s attempt to block the election -based prediction market.
Legal victory allowed Kalshi to continue to provide election contracts, but it almost helped to solve the regulatory gray area surrounding the event -based derivatives.
A CFTC spokesman said that the company could “exert the supervision as much as possible as much as possible.”
The agency is working hard to see if these products should be treated as a traditional derivative rules or as a different kind of financial instrument.
For Robinhood, this latest obstacle may not end to push into the space. The company has announced plans to launch a broader event contract platform at the end of this year, and there is still a chance in the market.