Blockchain.com has submitted applications to the Commodity Futures Trading Commission for Designated Contract Market (DCM) and Futures Commission Merchant (FCM) licenses, seeking to offer crypto derivatives and prediction markets to U.S. traders.
The applications directly precede a planned initial public offering targeting a $500 million capital raise. Regulatory approval for federally overseen derivatives operations would eliminate a material revenue-stream risk for investors evaluating the company at IPO.
A DCM license permits operation of a regulated futures or options exchange. An FCM license allows a firm to solicit and accept orders for futures contracts and hold customer collateral. Together, they establish the infrastructure to run a compliant derivatives marketplace under direct CFTC oversight.
Prediction markets—platforms allowing bets on future events—have historically occupied regulatory gray area in the U.S. with classification as either commodities or securities contested between the CFTC and SEC. A DCM license from the CFTC would provide Blockchain.com explicit authorization to operate them as federally regulated commodity contracts.
Platform peers have adopted divergent regulatory paths. Kalshi obtained DCM status for event contracts. Others operate under state money transmitter licenses or accept geographic restrictions on U.S. service. Blockchain.com's federal approach signals confidence in the CFTC's jurisdiction over crypto derivatives and bet contracts.
The licensing process is lengthy and demanding, requiring extensive operational, financial and compliance documentation. The CFTC must assess the firm's market surveillance systems, cybersecurity infrastructure, customer protection mechanisms and proposed contract specifications. Denial is possible if the agency concludes any element fails its public interest standard.
