Blockchain.com pursues CFTC approval for prediction markets: CNBC
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Blockchain.com has applied to the US Commodity Futures Trading Commission (CFTC) for approval to offer prediction markets and crypto derivatives. The company filed for two licenses as a designated contract market (DCM) and futures commission merchant (FCM), which would allow it to operate as a futures exchange for event contracts and a broker for derivatives contracts. This move follows Blockchain.com's earlier announcement to partner with Polymarket for prediction markets integration but would enable Blockchain.com to offer its own marketplace if approved.
Why it matters
Approval from the CFTC would legally authorize Blockchain.com to operate prediction markets and derivatives trading in the US, expanding its product offerings. It also intersects with ongoing regulatory ambiguity and legal disputes over prediction markets like Kalshi and Polymarket, involving conflicts between federal and state oversight. The development highlights regulatory efforts to formalize crypto derivatives and prediction markets amid calls for increasedcrypto regulation.
Key context
Prediction markets in the US are currently under legal scrutiny, with state authorities filing lawsuits over alleged illicit betting activities on platforms like Kalshi and Polymarket. New Jersey has petitioned the US Supreme Court to clarify regulatory jurisdiction over prediction markets. CFTC Chair Michael Selig has been advocating for crypto regulation through agency rulemaking to prevent incidents like the FTX collapse, underscoring the agency's intention to regulate crypto spot markets and prediction markets.
Key numbers and entities
Blockchain.com, Commodity Futures Trading Commission (CFTC), Polymarket, Kalshi, New Jersey state officials, CFTC Chair Michael Selig, former FTX CEO Sam Bankman-Fried. Blockchain.com has considered a $6 billion valuation IPO aiming to raise $500 million.
What remains unclear
It is not established whether the CFTC will approve Blockchain.com’s applications or the timeline for regulatory decisions. The exact nature of Blockchain.com’s proposed event contracts and derivatives offerings has not been detailed. Additionally, the resolution of federal versus state jurisdiction over prediction markets remains pending.