Blockchain.com seeks CFTC nod for prediction markets, derivatives

The cryptocurrency platform Blockchain.com is moving to establish a foothold in two of the fastest-growing corners of U.S. trading, asking regulators for permission to list prediction markets and crypto derivatives for American customers. The company is pursuing designation and registration with the Commodity Futures Trading Commission, the federal agency that oversees derivatives activity.

The filing, reported by CNBC, would let Blockchain.com offer event contracts, instruments that pay out based on the outcome of real-world events, alongside derivatives tied to digital assets. Such products have drawn mounting attention from Washington as trading volumes have grown, with officials debating how far the agency's authority reaches over contracts that resemble wagers on elections, economic data or other outcomes.

For Blockchain.com, clearing that regulatory bar would represent a notable expansion. The firm is best known for consumer crypto services, including wallets and spot trading, and a U.S. derivatives arm would push it into a business dominated by established exchanges. Winning approval would require demonstrating safeguards around customer protection, market surveillance and clearing.

Prediction markets have become a contested subject among policymakers, and the review is unlikely to be swift. Approval would hand the company a new source of revenue; rejection would leave it pursuing other markets. Neither outcome is guaranteed, and the company has not indicated a timeline.