Blockchain.com Files for CFTC Licenses to Offer US Prediction Markets and Crypto Derivatives
Blockchain.com has filed for designated contract market and futures commission merchant licenses with the CFTC, aiming to operate its own regulated prediction markets and crypto derivatives in the US. The NFL separately filed an amicus brief urging the Supreme Court to hear a case arguing that Kalshi's sports contracts are gambling, not swaps.
Key takeaways
- Blockchain.com filed for DCM and FCM licenses with the CFTC to offer regulated prediction markets and crypto derivatives.
- The NFL filed an amicus brief on Oct 8 urging the Supreme Court to hear a case arguing Kalshi's sports contracts are gambling.
- If approved, Blockchain.com's licenses would allow it to run its own regulated event-contract venue, reducing reliance on overseas partners.
Blockchain.com has taken a significant step toward offering regulated prediction markets and crypto derivatives in the US. The crypto platform filed for designated contract market (DCM) and futures commission merchant (FCM) licenses with the Commodity Futures Trading Commission (CFTC). If approved, these licenses would allow Blockchain.com to run its own regulated event-contract venue, reducing its dependence on overseas partners.
Why Blockchain.com Is Pursuing CFTC Licenses
Blockchain.com is seeking to expand its services by offering regulated prediction markets and crypto derivatives. This move comes as the popularity of event-based trading grows across sports, finance, and crypto. By obtaining these licenses, Blockchain.com can provide a more comprehensive and regulated trading experience for its users, potentially attracting more institutional and retail investors.
The NFL's Supreme Court Challenge to Prediction Markets
In a related development, the NFL filed an amicus brief on October 8 urging the Supreme Court to hear New Jersey's case against Kalshi, a prediction market platform. The NFL argues that Kalshi's sports contracts are gambling, not CFTC-regulated swaps. This case could have significant implications for the regulation of prediction markets in the US, potentially affecting Blockchain.com's plans if the Court rules against the CFTC's authority over such contracts.
What to Watch Next
The outcome of Blockchain.com's CFTC license applications will be crucial for its expansion plans. If approved, it could set a precedent for other crypto platforms looking to offer similar services. Additionally, the Supreme Court's decision on whether to hear the NFL-backed case could shape the regulatory landscape for prediction markets. Users and investors should keep an eye on these developments as they unfold.
Frequently asked questions
What are prediction markets?
Prediction markets are platforms where users can trade contracts based on the outcome of future events, such as sports games or political elections.
Why is Blockchain.com seeking these licenses?
Blockchain.com is seeking these licenses to expand its offerings and provide a more regulated trading experience for its users.
What is the NFL's stance on prediction markets?
The NFL argues that prediction market sports contracts are gambling and should not be considered CFTC-regulated swaps.