Blockchain.com seeks CFTC greenlight for US prediction markets, crypto derivatives trading: CNBC

Blockchain.com has reportedly sought approval from the US Commodity Futures Trading Commission (CFTC) to launch prediction market offerings and crypto derivatives. The blockchain company has submitted two licensing applications to the CFTC for event contracts and crypto derivatives offerings for both US retail and institutional investors.

The designated contract market (DCM) and futures commission merchant (FCM) licenses would enable Blockchain.com to function as a futures exchange for event contracts and a broker for derivatives contracts. Earlier this year, the exchange announced a collaboration with Polymarket to integrate prediction market capabilities into its platform.

Should the CFTC grant the license, Blockchain.com would operate its own prediction market marketplace for event contracts. The question of oversight and enforcement of prediction market platforms, such as Kalshi and Polymarket, is currently under scrutiny in US courts as state authorities have pending lawsuits against the companies for alleged violations of sports and election betting laws.

New Jersey officials recently submitted a petition to the US Supreme Court to clarify the jurisdictional dispute between federal and state regulators. Blockchain.com is also reportedly exploring an initial public offering with a potential valuation of up to $6 billion, aiming to raise $500 million. CFTC Chair Michael Selig defended the agency's pursuit of cryptocurrency regulation through rulemaking instead of congressional legislation, referencing the FTX exchange's collapse.

Selig emphasized that the proposed rules would safeguard crypto spot markets and prevent the theft of customer funds, echoing his earlier claims of the agency's exclusive jurisdiction over prediction markets.