Blockchain.com has applied to the Commodity Futures Trading Commission (CFTC) for two registrations that, if granted, would let U.S. customers trade event contracts and crypto derivatives through one app.
The company said Oct. 13 it is seeking designated contract market status, which would let it operate a regulated exchange, and futures commission merchant registration, which would let it handle customer derivatives orders. Its proposed service would be open to U.S. retail and institutional customers and include crypto futures and options alongside event contracts.
Binance.US has submitted a separate application to enter prediction markets, the Financial Times reported Oct. 21, citing a person with knowledge of the matter. A filing does not authorize an exchange to begin offering contracts.
The reported submission follows a plan outlined in July by Binance.US CEO Stephen Gregory. He said the exchange intended to seek designated contract market status, a plan covered in earlier EconoTimes reporting on the exchange. The Financial Times report concerns a subsequent application, rather than regulatory approval.
Blockchain.com already offers access to prediction markets for eligible users outside the proposed U.S. service. In July, it announced a partnership with Polymarket to bring event contracts into its app in eligible markets worldwide. Blockchain.com says combining digital assets, derivatives and event contracts in one app would make it easier for customers to use those products.
Event contracts let traders take positions on whether an outcome will occur. The CFTC says a typical yes-or-no contract usually pays $1 if the selected outcome happens; traders can lose their stake and pay fees. Its directory lists Kalshi and Polymarket US as designated contract markets.
The proposed U.S. expansion comes amid a dispute over sports-related contracts. The Michigan Gaming Control Board said Coinbase Financial Markets, Inc. agreed to stop offering new contracts of that kind to Michigan customers and close remaining positions by 12 a.m. ET on Oct. 10. Michigan said the agreement did not resolve whether it can regulate CFTC-registered event contracts as gambling.
The CFTC asserts exclusive federal authority over event contracts on CFTC-registered designated contract markets, while Michigan says its gambling laws apply to sports-related contracts offered without a state gaming license. Related appeals are pending. Blockchain.com’s announcement gave no date for a decision on its applications.
