Blockchain.com has reportedly applied to the US Commodity Futures Trading Commission (CFTC) for approval of prediction market offerings and crypto derivatives. Event contracts — the core instruments of prediction markets — let traders take positions on the outcomes of real-world events such as elections and sports results.

According to a Friday report by CNBC, the exchange filed for two licenses with the CFTC covering event contracts and crypto derivatives offerings for US-based retail and institutional investors. One license, as a designated contract market (DCM), would allow Blockchain.com to operate as a futures exchange for event contracts, while the other, as a futures commission merchant (FCM), would enable it to broker derivatives contracts. Holding both registrations would let the exchange run its own event contract marketplace while also brokering derivatives contracts directly for customers.

In July, Blockchain.com announced plans to partner with Polymarket as part of a prediction markets integration on the company's app. If the CFTC licenses are approved, however, the exchange would be able to offer its own marketplace with event contracts, placing it in the same field as platforms such as Kalshi and Polymarket.

The question of oversight and enforcement of prediction market platforms such as Kalshi and Polymarket is currently being tested in US courts, with many state-level authorities holding pending lawsuits against the companies over alleged violations of laws on betting on sports and elections. Last month, New Jersey officials filed a petition asking the US Supreme Court to weigh in on their case against Kalshi, a step that could resolve disputes between federal and state regulators. How those cases are resolved could define the legal footing on which federally licensed event contract platforms operate.

Blockchain.com was also reportedly considering an initial public offering at a valuation of up to $6 billion, with expectations of raising $500 million.

CFTC chair pushes crypto regulation, citing FTX collapse

This week, CFTC Chair Michael Selig defended the agency's push to advance cryptocurrency regulation through rulemaking rather than legislation passed by Congress, invoking the collapse of the FTX exchange. The crypto company filed for bankruptcy in November 2022, and its downfall led to criminal charges against several executives, including former CEO Sam Bankman-Fried.

In a Wednesday Fox Business interview, Selig said the proposed rules, which would affect companies registering as licensed crypto businesses, would bring “safeguards to crypto spot markets”, citing FTX's collapse. On Friday, he posted that the agency's rules would prevent “theft of customer funds as we saw with FTX.”

Selig remains the CFTC's sole commissioner and chair, with no nominations for the agency's four empty seats announced by the White House as of Friday. The chair has repeatedly said he plans to enact President Donald Trump's crypto agenda and has also claimed the agency holds exclusive jurisdiction over prediction markets — the arena Blockchain.com is now trying to enter through its CFTC filings. How the agency rules on the applications, whether the Supreme Court takes up New Jersey's petition, and whether the White House moves to fill the four vacant seats are the next markers to watch.