Blockchain.com Seeks CFTC Green Light for US Crypto Derivatives and Prediction Markets

Can Blockchain.com Compete With Established Exchanges?

Blockchain.com has asked the US derivatives regulator for permission to run a designated contract market and act as a futures commission merchant, moves that would let it sell event contracts and cryptocurrency derivatives to American retail and institutional investors. The applications, filed with the Commodity Futures Trading Commission this month, mark the company's first direct attempt to operate trading infrastructure on US soil.

The London-based firm currently offers similar products overseas through partnerships with platforms such as Polymarket and Hyperliquid. Bringing those services in-house would give Blockchain.com greater control over order flow and customer data while sidestepping reliance on third-party venues that may face their own regulatory hurdles. The company did not disclose a timeline for approval or comment on how much capital it plans to commit to the proposed US operations.

Blockchain.com's push into regulated derivatives follows a broader industry trend of major crypto firms racing for federal licenses amid tightening oversight. Competitors including Coinbase and Kraken have already secured or are pursuing similar authorizations, betting that a clear regulatory framework will attract institutional money once market conditions improve. The firm's existing customer base of over 37 million wallets could provide a ready audience for leveraged crypto products and event-based contracts tied to elections, economic data, and corporate earnings.

A designated contract market license would allow Blockchain.com to operate its own futures exchange, while a futures commission merchant registration would let it execute trades on behalf of clients. Together, the two licenses would position the company as both venue operator and broker, mirroring the dual role played by established players like CME Group. Analysts note that success will depend on meeting the CFTC's capital requirements and demonstrating robust risk controls.

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Industry experts say the real test lies in execution. „Getting the license is step one; building trust and liquidity is step two,”said one former CFTC official familiar with the process. Blockchain.com will need to attract market makers and manage volatility in a sector still reeling from high-profile collapses and regulatory uncertainty. The company's brand recognition and existing infrastructure may help, but it faces stiff competition from well-capitalized rivals.

The applications arrive as Congress debates legislation that could reshape how digital asset markets are overseen. Should the proposed framework pass, firms with CFTC registration may gain a significant advantage in offering compliant products to US investors. Blockchain.com's move signals confidence that the regulatory landscape is stabilizing enough to justify major investments in domestic operations.

What licenses did Blockchain.com apply for? Blockchain.com filed applications with the CFTC for a designated contract market (DCM) license and a futures commission merchant (FCM) registration, which together would allow it to operate a derivatives exchange and broker trades for US customers.

Why is this important for US crypto markets? Securing these licenses would let Blockchain.com offer event contracts and crypto derivatives directly to American investors, increasing competition among regulated platforms and potentially drawing more institutional participation.

How does this affect existing services? Currently, Blockchain.com offers similar products internationally through partners like Polymarket and Hyperliquid. Bringing those services in-house would consolidate operations and reduce dependence on third-party venues.