Blockchain.com Seeks CFTC Approval for U.S. Prediction…

Blockchain.com has submitted applications for two licenses from the U.S. Commodity Futures Trading Commission as it seeks to bring prediction markets and cryptocurrency derivatives to American retail and institutional customers, the company told CNBC on October 9. The move would allow the digital asset platform to offer regulated U.S. trading services at a time when crypto exchanges are pushing deeper into event contracts and derivatives.

The filings cover designated contract market (DCM) status, which would let Blockchain.com run a regulated futures exchange, and registration as a futures commission merchant (FCM), which would permit it to provide brokerage services for derivatives contracts. CEO and co-founder Peter Smith said the applications fit the company's goal of combining digital asset management with trading and event-based contracts. "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. "Our DCM and FCM applications build toward that future in the U.S. through the appropriate regulatory frameworks."

Blockchain.com already offers prediction markets to selected international customers through a partnership with Polymarket launched earlier this year. In April, it added perpetual futures trading through its self-custodial DeFi wallet, using Hyperliquid infrastructure.

Regulatory race heats up

The company is not alone in pursuing regulated event-based trading. Binance.US said in July that it planned to apply for DCM status, while Crypto.com and Gemini run their own prediction market platforms and Coinbase offers event contracts through a partnership with Kalshi. The CFTC, meanwhile, is still shaping its oversight of prediction markets and the contracts listed on regulated exchanges, weighing changes to exchange requirements and consumer protections. The sector also faces legal uncertainty over whether federal derivatives rules take precedence over state gambling laws for sports-related contracts. On October 8, the NFL backed New Jersey's request for the U.S. Supreme Court to review a dispute involving Kalshi, arguing that sports outcome contracts should fall under state gambling regulation rather than exclusive federal derivatives oversight.

The expansion push coincides with Blockchain.com's preparations for a public listing. The company confidentially filed a draft registration statement with the Securities and Exchange Commission in May, and FinanceFeeds reported in September that it was targeting a valuation of $4 billion to $6 billion and weighing a U.S. IPO that could raise roughly $500 million. Whether the platform can bring its proposed prediction market and derivatives services to U.S. customers now rests on the CFTC's decisions on its applications.