Blockchain.com Pivots to Regulated In-House Markets
Major crypto exchange Blockchain.com has applied for two regulatory licenses with the US Commodity Futures Trading Commission (CFTC) to launch its own event contracts and crypto derivatives platform. According to Cointelegraph, the firm filed for designated contract market (DCM) and futures commission merchant (FCM) designations, which would authorize it to serve US-based retail and institutional investors directly.
The move signals a strategic pivot for the exchange. In July, Blockchain.com announced plans to integrate prediction markets into its app by partnering with Polymarket. Securing DCM and FCM licenses would instead allow the company to operate its own regulated venue, reducing its reliance on overseas partners. Traders evaluating the shifting landscape between regulated US platforms and offshore alternatives often compare Kalshi vs Polymarket, but Blockchain.com's entry could introduce a massive new regulated competitor to the space.
CFTC Clarifies Event Contract Rules
Blockchain.com's application arrives during a critical regulatory window. On Friday, the CFTC simultaneously advanced new guidelines for the industry. As reported by The Defiant, the agency proposed explicit swap status for event contracts while issuing a separate rule that excludes qualifying "casino-style wagers" from the swap definition. Interestingly, the agency bypassed a broader proposal after citing potential threats to existing prediction markets, emphasizing that the new measure changes no existing compliance obligations for platforms.
CFTC Chair Michael Selig has been aggressively pushing for crypto regulation through agency rulemaking rather than waiting for congressional legislation. Selig has frequently cited the November 2022 bankruptcy of FTX—which led to criminal charges for executives including Sam Bankman-Fried—as justification for stricter oversight to prevent the theft of customer funds. As the regulatory framework solidifies, market participants utilizing Polymarket tools may soon see a fully regulated, US-based alternative backed by Blockchain.com's substantial infrastructure and potential $6 billion valuation.