Blockchain.com Applies for CFTC License to Launch US Prediction Markets
Exchange seeks approval to trade event contracts and crypto derivatives in the US
Blockchain.com has applied to the US Commodity Futures Trading Commission for two licenses that would allow it to offer prediction markets and cryptocurrency derivatives to American investors, according to a CNBC report published Friday.
The company filed for approval as both a designated contract market and a futures commission merchant. A designated contract market lets a company run a futures exchange, while a futures commission merchant acts as a broker for derivatives contracts. These licenses would cover event contracts — bets on outcomes like elections or sports — and crypto derivatives tied to the price of digital assets.
Key details of the filing
- Blockchain.com applied for two CFTC licenses: one as a designated contract market and one as a futures commission merchant.
- The licenses would allow the exchange to offer event contracts and crypto derivatives to retail and institutional investors in the US.
- In July, the company announced a partnership with prediction market platform Polymarket, but its own CFTC license would let it build and operate a separate marketplace.
- Blockchain.com has reportedly been considering an initial public offering with a valuation of up to $6 billion, aiming to raise $500 million.
What the CFTC chair is saying about crypto rules
CFTC Chair Michael Selig has pushed for cryptocurrency regulation through agency rulemaking rather than waiting for Congress to pass new laws. In a Fox Business interview Wednesday, he cited the 2022 collapse of FTX as justification, saying proposed rules would bring safeguards to crypto spot markets and prevent the theft of customer funds that occurred at the fallen exchange.
Selig is currently the CFTC's only commissioner. The White House has not announced nominations for four vacant seats as of Friday. He has repeatedly said he plans to advance President Donald Trump's crypto agenda and has also claimed the agency has exclusive jurisdiction over prediction markets.
Legal battles over prediction markets continue
The regulatory status of prediction markets remains uncertain as courts weigh the issue. Companies like Kalshi and Polymarket face lawsuits from state-level authorities alleging violations of betting laws related to sports and elections. Last month, New Jersey officials filed a petition with the US Supreme Court to weigh in on their case against Kalshi, which could help resolve disputes between federal and state regulators.
Why this matters
If approved, Blockchain.com's licenses would mark a significant step in bringing regulated prediction markets and crypto derivatives to mainstream US investors. The filing comes amid an ongoing legal debate over whether the CFTC or individual states have authority over these platforms.
What happens next
The CFTC will review the applications. No timeline was provided for a decision.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.