Regulatory Applications Mark Push Into Domestic Markets

Blockchain.com submitted filings to the U.S. Commodity Futures Trading Commission on October 9, 2026, seeking approval for two key licenses. The designated contract market designation would enable the company to operate as a futures exchange for event contracts. The futures commission merchant license would allow it to serve as a broker facilitating derivatives transactions.

Approval of both would permit Blockchain.com to manage its own regulated venue in the United States. This would consolidate access to event-based contracts and cryptocurrency derivatives for local users, reducing reliance on international partners. The company already provides prediction markets through a partnership with Polymarket and perpetual futures via Hyperliquid to select international customers, but the licenses would bring those offerings under full U.S. oversight.

CEO and co-founder Peter Smith stated the goal is to deliver a single platform where users can manage digital assets, execute derivatives trades, and take positions on real-world events. The move aligns with a broader industry trend, as more firms pursue federal licenses to access the expanding prediction-markets sector.

Context of Growing Federal and State Regulatory Tensions

The application arrives amid heightened scrutiny over prediction markets, which involve trading contracts based on the outcomes of real-world events such as sports results or elections. Eleven other companies have filed for designated contract market licenses this year, with the CFTC having granted six new approvals in 2026.

State regulators have pursued legal action against platforms including Kalshi and Polymarket, alleging violations of gambling laws. Blockchain.com’s filings aim to provide jurisdictional clarity through federal oversight, shielding operations from potential state-level restrictions.

CFTC Chair Michael Selig has publicly emphasized the agency’s push for robust rules in the cryptocurrency space, referencing the 2022 FTX collapse as a cautionary example of risks including customer-fund theft. In a Fox Business interview, Selig highlighted how proposed safeguards would prevent such issues in crypto spot markets and related derivatives.

Market Drivers and Analyst Projections

Prediction markets have shown strong growth, with trading volumes rising sharply over the past year. Bernstein analysts project the sector could reach a $10 trillion market size by the end of the decade, generating substantial revenue through increased participation.

Blockchain.com’s strategy positions it to capitalize on this momentum by combining event contracts with crypto derivatives in one regulated environment. The filings also come as the company considers an initial public offering, potentially raising around $500 million at a valuation up to $6 billion, according to prior reports.

Industry-Wide Implications

Blockchain.com’s filings reflect a wider rush by crypto firms to secure CFTC approvals. This approach addresses ongoing disputes between federal authorities and state gambling regulators, many of whom have brought suits against prediction-market operators. A Supreme Court case involving Kalshi, supported by the NFL, adds to the uncertainty, with New Jersey authorities petitioning the court for clarity on oversight.

By securing federal licenses, Blockchain.com could offer a more stable environment for traders seeking exposure to both cryptocurrency derivatives and event outcomes. The company’s existing international offerings through Polymarket and Hyperliquid serve as a foundation, but the U.S. licenses would extend reach and compliance to domestic customers.

As the regulatory landscape evolves, with the CFTC asserting greater control over prediction markets, these applications highlight the platform’s commitment to expanding its footprint in a maturing market. No decisions on the filings have been announced as of the report date.