Blockchain.com has submitted applications to the U.S. Commodity Futures Trading Commission for two distinct licences that would enable the firm to operate a regulated prediction-market exchange and a derivatives brokerage for retail and institutional clients.
CFTC licence applications
The company seeks a designated contract market licence, which would classify it as a futures exchange for event-based contracts, and a futures commission merchant licence, allowing it to act as a broker for crypto-derivative products. Together, the authorisations would give Blockchain.com the legal framework to launch its own marketplace for event contracts, rather than relying solely on its existing integration with Polymarket.
Partnership and future marketplace
In July, Blockchain.com announced a collaboration with Polymarket to embed prediction-market functionality within its app. Should the CFTC approvals be granted, the exchange could expand beyond the partnership and run a proprietary venue for event contracts, potentially broadening its product suite for U.S. users.
Legal backdrop for prediction markets
The regulatory climate for platforms that enable betting on outcomes such as elections or sports remains unsettled. Federal courts are currently assessing the jurisdictional split between state and federal authorities, highlighted by lawsuits against firms like Kalshi and Polymarket. New Jersey recently filed a petition with the Supreme Court seeking clarification on its case against Kalshi, a move that could set precedent for how prediction markets are overseen nationwide.
CFTC leadership and rulemaking push
CFTC Chair Michael Selig has reiterated the agency’s intent to advance crypto regulation through rulemaking rather than awaiting congressional action, citing the collapse of the FTX exchange as a cautionary example. Selig argues that forthcoming rules will introduce safeguards to prevent customer-fund theft, a risk exposed by the FTX failure. The chair also maintains that the CFTC holds exclusive authority over prediction-market activities, even as the commission operates with only one commissioner and several vacant seats.
Potential IPO and valuation
Alongside its regulatory filings, Blockchain.com is reportedly exploring an initial public offering that could value the company at up to $6 billion, with a target raise of $500 million. The prospect of a public listing adds further impetus for securing clear regulatory status in the United States.
Why it matters
Securing CFTC licences would position Blockchain.com as a pioneer among crypto exchanges offering regulated prediction-market and derivative products in the U.S., potentially setting industry standards for compliance. The outcome could also influence broader regulatory approaches to betting-style crypto services, shaping how fintech firms navigate the intersection of finance, technology, and law.
