The recent probe of Crypto.com and Kalshi’s sports contracts everyone comes down to a single question – are event contracts provided on sports degree “games” according to the Commodities Exchange Act, said crypto lawyer Aaron Brogan.

Commodity Futures Trading Commission (CFTC) is investigating the Super Bowl -Event Contracts on Crypto.com and Kalshi, according to a Bloomberg report.

“If sports do not make up games, given CFTC’s current legal attitude, CFTC probably hasn’t the power to ban Crypto.com and Kalshi to self -certify these contracts,” Brogan told Coindesk.

However, all this is a little more complicated than it seems on the surface.

“This is a surprising thorny question that was addressed in the Kalshi decision,” Brogan said, referring to the decision from last fall that allowed Kalshi.

Brogan explained that the judge in this decision defined “Games” as “playing games” or “playing games for stakes” and specifically quoted previous discussions in Congress during the writing of the commodity exchange law, where a legislature said the rule against games was meant to cover sports betting.

“All that sounds bad for these contracts, but I’m not entirely convinced,” Brogan continued. “Judge Cobb’s finding here is Dicta-not binding and legislative history is only relevant where the law is ambiguous.”

Brogan also points to the Merriam-Webster Dictionary definition of games such as “to play games” but “practice or activity by playing games for bets.”

“At least in Merriam-Webst.

And finally, there is the question of the changing nature of CFTC itself. Many believe that the appointment of Republican Caroline Pham to the Commission President will lead to a more laissez-faire legislative approach, Brogan said.

“[The Democrats] Had been very skeptical of retail -oriented event contracts and fought hard against First Predictit and then Kalshi in 2023 and 2024 to try to prevent them from offering election contracts, “Brogan continued.

But how Laissez-Faire is still up to the debate.

“If they are investigating these post-auguration Kalshi contracts, they may still be Hawkish on at least some event contracts,” concluded Brogan.