Blockchain.com has submitted applications to the Commodity Futures Trading Commission (CFTC) to launch prediction markets and cryptocurrency derivatives services for retail and institutional customers in the United States. The filings, disclosed on October 9, request designated contract market (DCM) status to operate a regulated futures exchange and registration as a futures commission merchant (FCM) to broker derivatives contracts. These permissions would allow the company to offer event contracts and crypto derivatives under federal regulatory frameworks.
The company currently serves international customers through partnerships with Polymarket for prediction markets and Hyperliquid for perpetual futures, which launched in April via its self-custodial DeFi wallet. CEO Peter Smith stated that the applications aim to consolidate digital asset management, derivatives trading, and event-based positions into a single service. However, no U.S. launch date or decision timeline has been reported, leaving the operating position contingent on the regulator’s pending review.
This filing highlights the intensifying competition among major crypto platforms to secure legitimate access to the U.S. derivatives and event-contract markets. By pursuing both DCM and FCM statuses simultaneously, Blockchain.com is attempting to build a vertically integrated infrastructure that mirrors traditional financial exchanges while leveraging its existing decentralized finance capabilities. This strategy reflects a broader industry trend where crypto-native firms seek regulatory clarity to bridge the gap between offshore innovation and domestic compliance requirements.
However, the path to approval remains uncertain due to evolving regulatory interpretations and jurisdictional conflicts. The CFTC is still determining how to oversee prediction markets, particularly regarding customer protections and exchange requirements. Additionally, legal disputes such as the NFL’s challenge against Kalshi underscore potential friction between federal derivatives rules and state gambling laws. Investors and operators should watch for the CFTC’s final guidance on these structural issues, as they will define the viability of similar applications from competitors like Binance.US and Coinbase.
