Blockchain.com has applied for two CFTC licenses to offer prediction markets and crypto derivatives to retail and institutional investors in the United States. The move comes amid a massive surge in prediction-market volume, which reached $188 billion in Q3 2026. However, the platform enters a highly contested regulatory landscape, with federal and state authorities actively clashing in court over whether event contracts constitute derivatives or gambling. Simultaneously, Blockchain.com is preparing for a potential late 2026 IPO targeting a valuation of $4 billion to $6 billion.
Blockchain.com's applications for CFTC licenses
- ▪Blockchain.com applied to the U.S. Commodity Futures Trading Commission for a designated contract market license and registration as a futures commission merchant
- ▪Blockchain.com joined 11 other companies that have applied for designated contract market licenses in 2026, with the Commodity Futures Trading Commission approving six such licenses in 2026
Legal challenges to event contracts
- ▪New York Governor Kathy Hochul announced in late September 2026 that the state sued Polymarket, characterizing it as an unlicensed gambling operation
- ▪The National Football League filed an amicus brief on October 8, 2026, urging the Supreme Court to classify sports event contracts as gambling in Flaherty v. KalshiEX
- ▪The 6th U.S. Circuit Court of Appeals ruled on September 25, 2026, that Ohio and Tennessee can apply state gambling laws to event contracts
Blockchain.com's initial public offering plans
- ▪Bloomberg reported that Blockchain.com is targeting an initial public offering in 2026, seeking to raise approximately $500 million at a valuation between $4 billion and $6 billion
- ▪Blockchain.com confidentially submitted a draft registration statement for an initial public offering to the Securities and Exchange Commission in May 2026
Debatable claims
- ▪Prediction markets should be regulated as federal derivatives rather than state gambling
- ▪Sports event contracts are fundamentally gambling rather than financial derivatives
- ▪The CFTC's unilateral rulemaking is an effective way to secure cryptocurrency markets
- ▪Prediction markets are highly susceptible to market manipulation
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