Blockchain.com has filed applications with the US Commodity Futures Trading Commission (CFTC) for approval to operate prediction markets and crypto derivatives offerings, CNBC reported Friday.
The exchange is seeking two licenses: one as a designated contract market (DCM) and another as a futures commission merchant (FCM). These designations would enable Blockchain.com to operate as a futures exchange for event contracts and function as a broker for derivatives contracts.
In July, Blockchain.com announced plans to integrate prediction markets through a partnership with Polymarket. Direct CFTC approval would allow the exchange to establish its own marketplace for event contracts rather than relying solely on third-party integrations.
Regulatory Landscape for Prediction Markets
The regulatory treatment of prediction market platforms remains unsettled. Platforms including Kalshi and Polymarket face ongoing legal challenges, with state-level authorities pursuing lawsuits over allegations of violations related to betting on sports and elections. Last month, New Jersey officials petitioned the US Supreme Court to intervene in their case against Kalshi, a dispute that could clarify the division of authority between federal and state regulators.
CFTC Chair Advances Crypto Rulemaking
CFTC Chair Michael Selig has defended the agency's approach to crypto regulation through rulemaking rather than congressional legislation. In a Wednesday Fox Business interview, Selig cited the collapse of FTX as justification for the proposed rules, which would apply to companies registering as licensed crypto businesses. He stated the rules would bring safeguards to crypto spot markets, and in a Friday post emphasized they would prevent customer fund theft as occurred at FTX.
The FTX exchange filed for bankruptcy in November 2022, leading to criminal charges against multiple executives. Selig currently serves as the CFTC's sole commissioner and chair, with four vacant seats remaining unfilled as of Friday.
