Summary

  • Blockchain.com has submitted an application to the Commodity Futures Trading Commission (CFTC) for two licenses: a designated contract market license and a futures commission merchant license, enabling it to provide event contracts and crypto derivatives to U.S. users.
  • This initiative aims to internalize offerings that are currently available only through international partnerships with platforms like Polymarket and Hyperliquid.
  • Blockchain.com enters a competitive field as the CFTC asserts its regulatory authority amid ongoing legal challenges from state gambling regulators.

Blockchain.com is making significant moves to capitalize on the expanding U.S. prediction market sector. The company has announced its application to the Commodity Futures Trading Commission (CFTC) for licenses to provide event contracts and cryptocurrency derivatives to both retail and institutional clients in the United States.

The crypto firm has filed for two specific licenses: one to operate as a designated contract market, allowing it to function as a futures exchange for event contracts, and another as a futures commission merchant, which would enable it to serve as a broker for derivatives.

If approved, these licenses would empower Blockchain.com to establish its own regulated marketplace catering to U.S. traders.

This move aims to consolidate what the company currently offers through international partners. Earlier this year, Blockchain.com began offering prediction markets to select overseas clients in collaboration with Polymarket and launched perpetual futures through the decentralized exchange Hyperliquid.

Acquiring a CFTC license would permit Blockchain.com to create its own venue for event contracts rather than relying on third-party platforms. CEO and co-founder Peter Smith shared with CNBC that the objective is to provide users with a unified platform for managing digital assets, trading derivatives, and engaging in real-world event betting.

This application emerges in a crowded landscape as numerous other companies also seek federally regulated event trading licenses. According to CNBC, Blockchain.com is among 11 firms that have applied for designated contract market licenses this year, with the CFTC having already approved six new licenses in 2026.

The motivation behind pursuing federal licenses is largely jurisdictional; a CFTC license offers protection from state gambling regulators, who have taken legal action against prediction-market operators such as Kalshi and Polymarket.

The regulatory environment is rapidly evolving, with states challenging federal regulators in court over jurisdictional authority in these markets.

Recently, the CFTC submitted new regulatory proposals to the White House aimed at solidifying its oversight of prediction markets, while a court case questioning whether event contracts fall under federally regulated swaps has drawn the attention of the Supreme Court, involving parties like the NFL and Kalshi.

For Blockchain.com and similar companies, the attraction of prediction markets is clear, as the sector is thriving with increasing mainstream acceptance and a significant rise in trading volumes over the past year.

Bernstein analysts have forecasted that the prediction market segment could generate billions in revenue by the end of the decade, projecting it will evolve into a $10 trillion market.