Crypto.com, a US-regulated exchange offering contracts tied to sports events, has implemented a three-second delay for some customers placing wagers on sports games. Crypto.com facilitates the buying and selling of various cryptocurrencies, while also offering services such as crypto staking, NFTs, and crypto-backed loans. The company’s prediction market allows users to trade on the outcomes of future events.
According to documentation on its website, the delay will not apply to market makers, often professional traders. This allows sophisticated players to adjust pricing before other customers, particularly those at live events who may see odds-shifting moments first, can react. The company states this change “supports liquidity and fairness.” Crypto.com cleared the delays with the Commodity Futures Trading Commission (CFTC) on July 30.
Kalshi, another prediction market exchange, has also submitted documentation to regulators proposing its own order delays. The proposal, currently under a ten-business-day review by the CFTC, does not specify which customers would be subject to these delays. It could take effect as early as this week if the regulator approves it. Kalshi declined to comment.
As prediction markets grow, especially around sports games, exchanges are looking to attract market-making firms to improve liquidity and trading efficiency. However, such delays could put prediction markets in a position similar to equities and derivatives exchanges, which have faced criticism for favouring high-speed market makers. This could undermine the argument that prediction markets offer a level playing field compared to traditional sports gambling companies.
