Crypto.com Secures CFTC Derivatives License in the US

Crypto.com has obtained a derivatives license from the US Commodity Futures Trading Commission (CFTC), enabling it to offer margin derivatives in the country. The license was awarded to Crypto.com Derivatives North America (CDNA), which had its previous authorization upgraded to a derivatives clearing organization (DCO) license. Previously, CDNA only offered fully collateralized derivatives and prediction market services.

“The full stack of CFTC-approved derivatives licences allows Crypto.com to seamlessly provide clients with the most comprehensive and integrated derivatives experience, alongside Crypto.com’s additional product offerings including spot markets, prediction markets, stocks, qualified custody, credit and debit cards, and more,” said Kris Marszalek, Co-Founder and CEO of Crypto.com.

The company stated that discussions with the CFTC began in 2023 and that it filed its request for an amended DCO order on June 7, 2024. The approval comes as the CFTC under the Trump administration pursues looser regulations around digital assets. 

Among its initiatives, the agency announced plans to allow tokenized collateral in derivatives markets, explore access for MiCA-authorized European platforms, and consider permitting trading of "spot crypto asset contracts" on registered futures exchanges.

Marszalek acknowledged the cooperation with Acting Chairman Caroline Pham and emphasized the CFTC's role in advancing President Trump's crypto agenda. 

Underdog partners with Crypto.com

Crypto.com is also expanding its reach through a partnership with Underdog, a fantasy and sports gaming operator. The companies confirmed plans to introduce sports prediction markets in 16 states, particularly in jurisdictions where sports betting is not yet legalized, which can be tracked with our legal sports betting states tracker.

“Prediction markets are one of the most exciting developments we’ve seen in a long time, ” Underdog founder and CEO Jeremy Levine said. “While still new and evolving, one thing is clear -- the future of prediction markets is going to be about sports -- and no one does sports better than Underdog.”

Though event contracts are already offered through Robinhood, Kalshi, and PolyMarket, Underdog becomes the first sports-centered exchange to venture into the prediction markets market. Other giants in the gaming sector are also venturing into the industry. FanDuel has partnered with CME Group to provide financial event contracts, while DraftKings has expressed interest in similar undertakings.

Under the new arrangement between Crypto.com and Underdog, sports event contracts will be cleared by Crypto.com Derivatives North America, a registered entity with the CFTC, which will operate on Underdog's platform using its technology.

Sports prediction markets could be especially significant in large states, where commercial sportsbooks face either prohibition or tribal resistance. Federal regulators and courts are still assessing whether these products constitute gambling or financial trading, with questions over their compatibility with state laws and the Indian Gaming Regulatory Act.