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Blockchain.com Seeks CFTC Licenses for U.S. Prediction Markets, Crypto Derivatives
DCM and FCM applications could open event contracts and derivatives to U.S. customers
TL;DR
- Blockchain.com has applied for two CFTC registrations covering event contracts and crypto derivatives for U.S. retail and institutional investors.
- Approval could allow the company to operate its own event-contract marketplace and derivatives brokerage in the U.S.
- Blockchain.com is also pursuing a potential IPO that could raise roughly $500 million at a $4 billion to $6 billion valuation.
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Blockchain.com has applied for two U.S. regulatory approvals that could allow it to offer prediction markets and crypto derivatives to U.S. retail and institutional investors, CNBC reported Friday. The company is seeking a designated contract market, or DCM, license and registration as a futures commission merchant, or FCM, from the Commodity Futures Trading Commission. The DCM license would let Blockchain.com operate a futures exchange for event contracts, while the FCM registration would allow it to act as a broker for derivatives contracts.
CEO and co-founder Peter Smith framed the applications as part of a broader effort to consolidate trading services on one platform. “Users should be able to manage their digital assets, trade derivatives and take positions on real-world events easily, without jumping between different apps,” Smith said in a statement cited by CNBC.
Blockchain.com already offers prediction markets through Polymarket and perpetual futures through Hyperliquid to non-U.S. customers. The company announced in July that it planned to integrate Polymarket into its app. CFTC approval would go further by allowing Blockchain.com to operate its own event-contract marketplace for U.S. customers rather than relying only on a third-party prediction-market integration.
Applications extend Blockchain.com’s broader U.S. market push
The licensing effort follows a September agreement with the New York Stock Exchange that is expected to give Blockchain.com users access to tokenized U.S. stocks and exchange-traded funds through the NYSE’s planned digital trading platform.
Blockchain.com is also preparing for a possible public listing. The company confidentially filed for an initial public offering in May. Bloomberg reported last week that Blockchain.com was seeking to raise roughly $500 million at a valuation of between $4 billion and $6 billion, with a listing targeted before the end of 2026.
Plans to go public stretch back at least four years. Blockchain.com was speaking with banks in April 2022 about a potential listing that year, shortly after raising funding at a $14 billion valuation.
Prediction markets remain caught between federal and state oversight
Blockchain.com’s applications arrive as U.S. courts consider disputes over how prediction markets should be regulated. State-level authorities have pending lawsuits involving platforms including Kalshi and Polymarket over alleged violations of laws governing betting on sports and elections.
New Jersey officials filed a petition with the U.S. Supreme Court last month seeking review of the state’s case against Kalshi. The case could address disputes between state authorities and federal regulators over oversight of prediction-market contracts.
CFTC Chair Michael Selig has separately defended the agency’s effort to advance cryptocurrency rules through rulemaking rather than waiting for legislation from Congress. He cited the collapse of FTX, which filed for bankruptcy in November 2022 and was followed by criminal charges against several executives, including former CEO Sam Bankman-Fried.
Selig said in a Wednesday Fox Business interview that the proposed rules for companies registering as licensed crypto businesses would bring “safeguards to crypto spot markets.” On Friday, he said the rules would prevent “theft of customer funds as we saw with FTX.”
Selig remains the CFTC’s sole commissioner and chair. No White House nominations had been announced for the agency’s four empty seats as of Friday. He has repeatedly said he plans to implement President Donald Trump’s crypto agenda and has also argued that the CFTC has exclusive jurisdiction over prediction markets.
This article has been refined and enhanced by ChatGPT.
