Blockchain.com has applied to the Commodity Futures Trading Commission (CFTC) for two licenses to operate prediction markets and offer cryptocurrency derivatives to U.S. customers. The company seeks a designated contract market license, which would allow it to function as a futures exchange for event contracts, and a futures commission merchant license, enabling it to act as a broker for derivatives.
These applications aim to bring operations in-house that Blockchain.com currently facilitates through international partnerships. The company has been offering prediction markets to some international clients via Polymarket and perpetual futures through the decentralized exchange Hyperliquid. Obtaining CFTC approval would enable Blockchain.com to run its own regulated marketplace for both retail and institutional traders in the United States.
Peter Smith, CEO and co-founder of Blockchain.com, stated that the company’s objective is to provide users with a single platform for managing digital assets, trading derivatives, and making predictions on real-world events. This move aligns with a broader trend of companies seeking federal regulation for event trading in the U.S.
Blockchain.com is one of 11 companies that have applied for designated contract market licenses this year. The CFTC approved six new licenses in 2026. The pursuit of federal licenses is partly driven by jurisdictional advantages, as a CFTC license can shield operators from state gambling regulators, who have initiated lawsuits against prediction market platforms such as Kalshi and Polymarket.
The regulatory landscape for these markets is evolving rapidly. States are engaged in legal disputes with federal regulators over oversight authority. The CFTC has recently submitted new rules to the White House intended to solidify its control over prediction markets. Additionally, a legal challenge concerning whether event contracts constitute federally regulated swaps, involving entities like the NFL and Kalshi, has reached the Supreme Court.
The appeal of prediction markets is evident in their growing popularity and significant increase in trading volumes over the past year. Analysts at Bernstein have projected that the prediction market sector could generate billions in revenue by the end of this decade, potentially reaching a market value of $10 trillion.
The regulatory environment is a significant factor for companies like Blockchain.com. The CFTC’s assertion of authority comes amid state-level enforcement actions and ongoing legal battles. The agency’s proposed rules aim to provide a clearer framework for prediction markets. This development also follows recent discussions at the White House that have underscored a particular regulatory direction for XRP.
Companies in the crypto space are navigating a complex regulatory environment. This includes efforts by global regulators to consolidate crypto enforcement across various markets. In the UK, regulators have approved subsidiaries of Aave Labs for crypto exchange services, indicating a differing approach to market oversight.
The push for regulated platforms like those Blockchain.com is seeking licenses for could also be influenced by broader political movements. For example, Trump’s crypto initiatives have garnered support from major tech and finance executives, suggesting a growing interest in the sector from various stakeholders.
The future of prediction markets and crypto derivatives in the U.S. hinges on regulatory approvals and the evolving legal landscape. Blockchain.com’s application is a significant step in its bid to establish a regulated presence in the U.S. market, aiming to integrate various financial activities into a single platform.
