Autor Cointelegraph By Turner Wright

Cointelegraph is committed to providing independent, high-quality journalism across the crypto, blockchain, AI, and fintech industries.All news, reviews, and analyses are produced with full journalistic independence and integrity. For more details on our standards and processes, please read our Editorial Policy.

Cointelegraph is committed to providing independent, high-quality journalism across the crypto, blockchain, AI, and fintech industries.All news, reviews, and analyses are produced with full journalistic independence and integrity. For more details on our standards and processes, please read our Editorial Policy.

Blockchain.com has reportedly applied to the US Commodity Futures Trading Commission (CFTC) for approval of prediction market offerings and crypto derivatives. CNBC reported Friday that the exchange filed for two licenses with the CFTC for event contracts and crypto derivatives offerings for US-based retail and institutional investors. The licenses, as a designated contract market (DCM) and futures commission merchant (FCM), would allow Blockchain.com to operate as a futures exchange for event contracts and a broker for derivatives contracts, respectively.Blockchain.com announced in July that it planned to partner with Polymarket as part of a prediction markets integration on the company’s app. However, if approved, the CFTC license would allow the exchange to offer its own marketplace with event contracts.The question of oversight and enforcement of prediction market platforms like Kalshi and Polymarket is currently being tested in US courts, as many state-level authorities have lawsuits pending against companies for alleged violations of laws betting on sports and elections. Last month, New Jersey officials filed a petition with the US Supreme Court to weigh in on their case against Kalshi, which could resolve disputes between federal and state regulators.Related: Prediction markets hit new high as Polymarket enters Sam Altman’s WorldBlockchain.com was also reportedly considering an initial public offering with a valuation of up to $6 billion, expecting to raise $500 million.CFTC chair pushes crypto regulation, citing FTX collapseThis week, CFTC Chair Michael Selig justified the agency’s attempts to move forward with cryptocurrency regulation through rulemaking rather than legislation passed by Congress, invoking the downfall of the FTX exchange. The crypto company filed for bankruptcy in November 2022 and led to criminal charges for many of its executives, including former CEO Sam Bankman-Fried.In a Wednesday Fox Business interview, Selig said the proposed rules, which would affect companies registering as licensed crypto businesses, would bring “safeguards to crypto spot markets,” citing FTX’s collapse. On Friday, he posted that the agency’s rules would prevent “theft of customer funds as we saw with FTX.”Selig remains the CFTC’s sole commissioner and chair, with no nominations for the four empty seats at the agency announced by the White House as of Friday. The chair has repeatedly said he plans to enact President Donald Trump’s crypto agenda and has also claimed the agency has exclusive jurisdiction over prediction markets.Magazine: France is world’s most dangerous place for Bitcoiners: 90 attacks in 7 months

The National Football League (NFL) largely sided with New Jersey officials in their petition for the Supreme Court to consider a case on sports bets through prediction markets platforms In an amicus brief filed with the US Supreme Court on Wednesday, the NFL called on the justices to grant a petition for a writ of certiorari from New Jersey Attorney General Jennifer Davenport and gaming enforcement interim director Mary Jo Flaherty. The filing came in response to New Jersey officials petitioning the court to consider its case against Kalshi, potentially resolving whether the jurisdiction of prediction market companies falls under state authorities or federal agencies.The football league supported many of the New Jersey authorities’ arguments, including that the case addresses potential issues with labeling sporting-event contracts on prediction market platforms as “swaps” and that it should be reviewed to “preserve game integrity” and “protect customers.” The group cited data showing that on the first Sunday of the football season, “more than half of all prediction-markets’ trading volume,” about $1.8 billion of $3.3 billion, related to the NFL.According to the NFL, many of the sporting event contracts on Kalshi and other platforms were “highly susceptible to manipulation” or “otherwise inherently objectionable.”“These bets, in the NFL’s view, pose the greatest threats to game integrity, because many can be manipulated by a single person, especially if known in advance—for instance, a player can alter his performance, a coach can change his team’s lineup, or an official can make (or not make) certain calls,” said the amicus brief. Event contract on 2027 Super Bowl. Source: KalshiRelated: New York sues Polymarket over alleged illegal gambling businessAlso at issue, according to the NFL, was the lack of what it called “sensible safeguards” for event contracts from the Commodity Futures Trading Commission (CFTC). Federalizing sports betting regulation, rather than leaving it to individual US state authorities, was a “major question” the Supreme Court should consider. As of Thursday, the Supreme Court had not announced whether it planned to grant review of the case. Kalshi was granted an extension to respond to the New Jersey filing, giving the company until Nov. 9 to address issues related to jurisdiction, manipulable event contracts, and consumer protection.States want clarification from SCOTUS on prediction marketsOn Wednesday, 39 US states and the District of Columbia also filed an amicus brief supporting New Jersey’s position, saying the conflict between the CFTC and state authorities over prediction markets had resulted in a “national turf war” that could not be resolved without an answer from the Supreme Court.“Waiting too long to address this issue will permit the federal-state regulatory dispute to escalate,” said the filing. “The ongoing power struggle between the States and the CFTC highlights the unpredictability about what law applies—and to whom. Whether in this case, or in one of the many more cases sure to come, this Court should step in, resolve the circuit split, provide guidance to lower courts, clarify the CFTC’s authority, and provide the badly needed answer to the Question Presented.”Kalshi spokesperson Dani Lever told Cointelegraph after the September New Jersey filing that the company could not be “regulated by 50 different regulators.“Whether the Supreme Court justices will take up the issue of prediction markets is unclear. While New Jersey officials were the first to petition the high court to consider the Kalshi case, there were many examples of state-level actions against prediction market companies that could still face appeal. Magazine: Crypto lending rises again… but have they solved the risks?

Video streaming platform Netflix released a trailer for its eight-episode series about the lead-up to the collapse of cryptocurrency exchange FTX, centered on former CEO Sam “SBF” Bankman-Fried and his colleague and girlfriend, Caroline Ellison, who headed the company’s sister arm, Alameda Research.In a Thursday X post, Netflix showed footage from the upcoming series to be released on Nov. 19 “about the love scorned prodigies behind the FTX scandal.” The series, starring Anthony Boyle as Bankman-Fried and Julia Garner as Ellison, seemed to focus on the idea that “going all-in every time is the mathematically optimal strategy,” likely referring to the crypto exchange’s high-risk investments using user funds.“Lying isn’t bad for a good cause,” said Garner as Ellison in the trailer. The line echoes Ellison’s testimony at Bankman-Fried’s 2023 criminal trial, when she said he believed rules against lying and stealing did not necessarily apply to effective altruism. The philosophy emphasizes doing the most good possible, including through “earning to give,” the practice of accumulating wealth to donate to charitable causes.Bankman-Fried, Ellison and others tied to FTX and Alameda were indicted in December 2022 following the exchange’s collapse and bankruptcy. Ellison took a plea deal and testified against SBF, while Bankman-Fried chose to go to trial. He was found guilty on seven felony counts related to fraud and sentenced to 25 years in prison. As of October, Bankman-Fried had pending motions requesting a presidential pardon from Donald Trump and having his conviction overturned by the US Supreme Court. Ellison was released from federal custody in January.Related: US Senate unanimously adopts resolution opposing clemency for SBFCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.