Blockchain.com Seeks US Regulatory Approval for Prediction Markets and Crypto Derivatives
Blockchain.com has applied for designated contract market (DCM) and futures commission merchant (FCM) licenses with a US regulatory body. These approvals would enable the platform to operate regulated event-contract venues and offer crypto
What happened
Blockchain.com, a prominent cryptocurrency platform, has reportedly submitted applications for specific regulatory approvals in the United States. The company is seeking both a designated contract market (DCM) license and a futures commission merchant (FCM) license. These applications were filed with the U.S. commodities regulatory body.
Securing these licenses would allow Blockchain.com to establish and operate its own regulated event-contract venue within the US. This move would reduce its reliance on international partners for such services. Additionally, the approvals would enable the platform to offer crypto derivatives trading to US customers.
Why it matters
The pursuit of these licenses by Blockchain.com indicates a strategic move towards regulated expansion in the United States market. Operating a regulated event-contract venue independently, rather than through overseas collaborations, could enhance the platform's domestic operational autonomy. The ability to offer crypto derivatives directly in the US market, under local regulatory oversight, represents a significant development for the company and potentially for the broader US crypto landscape. One report noted that this initiative is ahead of a planned $500 million initial public offering (IPO), though the reports are thin on details regarding the IPO itself or its direct connection to the license applications beyond timing.
Safety notes
Investors should be aware that the applications for these licenses are currently in process and regulatory approval is not guaranteed. The reports are based on information from CNBC, with Cointelegraph and The Block citing this source. The specific timeline for regulatory decisions is not mentioned in the provided information. The legal and regulatory environment for prediction markets in the US is evolving, with courts currently weighing various cases related to their operation. This situation adds a layer of complexity to the landscape in which Blockchain.com is seeking to expand its offerings.