Robinhood Suspends Super Bowl Following CFTC Request

Crypto trading platform Robinhood has suspended its newly launched Super Bowl betting feature following a request from the Commodity Futures Trading Commission (CFTC). The agency has asked the exchange not to permit customers to access sports event contracts.

In a statement on February 4, Robinhood announced that it would pause the launch of its Pro Football Championship market while it collaborates with the CFTC to address and clarify the commission’s concerns.

Robinhood had recently rolled out a feature to around 1% of its customers, some of whom had already placed trades.

“We have rolled this product out to roughly 1% of our customers, and for those who already placed trades, we plan on providing the option to close their positions or take them to resolution,” the exchange wrote.

Robinhood Expresses Disappointment

The crypto exchange giant expressed disappointment with the outcome, mainly because it had consistently communicated with the agency regarding its intentions and plans to offer the product.

Additionally, the firm stated that it has actively worked to promote balanced regulation in the futures and derivatives markets, including participating in a CFTC roundtable, submitting written feedback to the CFTC, and advocating for the economic advantages of event contracts.

Before the halt, the feature was designed to enable users to bet on the Super Bowl outcome using crypto. Capitalizing on the growing intersection of digital assets and sports betting, it introduced a modern, crypto-based approach to the annual tradition of placing bets on the big game.

Meanwhile, the recent development highlights the difficulties crypto platforms encounter when trying to merge with traditional industries. Robinhood’s betting feature, which had sparked considerable user interest, is now at the center of the ongoing regulatory discussion about the role of crypto in financial markets.

Robinhood Partners With Kalshi

The decision to halt the feature comes just four days before the highly anticipated event and a day after the company launched the product in partnership with prediction market Kalshi, known for its event-based contracts and ability to let users trade on the outcomes of real-world events, allowing betting on the outcome of the Philadelphia Eagles versus Kansas City Chiefs.

In October, Robinhood ventured into event contracts for the first time, providing trades centered around the results of the United States presidential election.