Blockchain.com has filed applications with the Commodity Futures Trading Commission (CFTC) for two specific licenses: a designated contract market (DCM) license to operate as a futures exchange for event contracts, and a futures commission merchant (FCM) license to act as a broker for derivatives. If approved, these designations would allow the platform to serve both retail and institutional customers in the United States through its own regulated marketplace. Currently, Blockchain.com offers prediction markets to international users through partnerships with Polymarket and perpetual futures via the decentralized exchange Hyperliquid. The new application seeks to internalize these offerings, enabling users to manage digital assets, trade derivatives, and bet on real-world events within a single platform, according to CEO Peter Smith.
This move places Blockchain.com among 11 other companies that have filed for DCM licenses this year, amid a broader rush toward federally regulated event trading. The CFTC has already approved six new DCMs in 2026. The drive for federal licensing is partly motivated by jurisdictional concerns, as state gambling regulators have sued prediction-market operators such as Kalshi and Polymarket. A CFTC license may provide cover from these state-level actions. The regulatory landscape remains contested, with the CFTC recently submitting new rules to the White House to cement its authority over prediction markets. Additionally, a Supreme Court case involving the NFL and Kalshi is examining whether event contracts qualify as federally regulated swaps.
The strategic pivot to seek direct CFTC licensure reflects a critical effort by major crypto platforms to consolidate fragmented service offerings under a unified regulatory umbrella. By moving away from reliance on third-party partners like Polymarket and Hyperliquid, Blockchain.com aims to capture greater control over user experience and revenue streams while mitigating operational risks associated with external dependencies. This consolidation aligns with the company’s stated goal of providing an integrated environment for asset management, derivative trading, and event betting, which could enhance competitive positioning against traditional financial institutions entering the space.
However, the pursuit of federal approval occurs amidst significant legal ambiguity regarding the classification of event contracts. The ongoing litigation between state regulators and federal authorities, alongside the Supreme Court’s involvement in determining if these instruments are swaps, introduces substantial regulatory uncertainty. While a CFTC license offers potential insulation from state gambling suits, it does not guarantee immunity from future judicial reinterpretations of federal authority. Market participants should monitor how the CFTC balances its assertion of jurisdiction against state interests, as this dynamic will ultimately define the compliance framework and viability of prediction markets within the U.S. financial infrastructure.
