CFTC approves Bitnomial to launch cryptocurrency prediction market

Source: CryptoNewsNet
Original Title: CFTC gives Bitnomial the green light to launch crypto prediction markets
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Regulatory Approval

Bitnomial Clearinghouse LLC is an infrastructure clearing service provider that recently announced the U.S. Commodity Futures Trading Commission (CFTC) has approved its fully collateralized swap contracts.

Based on this approval, Bitnomial’s parent company (a U.S.-regulated digital asset derivatives exchange) is now authorized to provide clearing services to other platforms and has begun operating prediction markets.

In a recent report, Bitnomial stated that its prediction markets will mainly focus on the cryptocurrency industry and economic events, supplementing its existing BTC and crypto derivatives products. These contracts will enable traders to bet on outcomes such as macroeconomic data and token price levels.

Product Expansion and Ecosystem Development

Following the approval, informed sources indicated that the CFTC’s decision will significantly expand the range of trading products offered by Bitnomial. This Chicago-based company currently offers perpetual contracts, futures, options, and leveraged spot trading through its exchange and clearing division.

Additionally, its clearinghouse supports crypto-based margin and settlement, allowing approved products to use digital assets directly for margin and settlement.

The crypto community expressed excitement over Bitnomial’s approval. Bitnomial President Michael Dunn commented, emphasizing that this approval is a significant recent achievement, enabling the company to support its own exchange and external partners. He stated that this initiative has built a clearing network that improves the overall prediction market ecosystem.

Regarding the report that the Bitnomial clearinghouse operates as an infrastructure clearing service provider, informed sources clarified that the company chose to undertake this role rather than compete with retail businesses. This strategy allows partners to access its margin and settlement systems and creates space for collateral conversion between USD and cryptocurrencies.

Analysts noted that Bitnomial’s recent approval closely followed the CFTC’s approval of U.S. spot cryptocurrency trading platforms. These platforms enable clients to efficiently buy, sell, and trade leveraged and non-leveraged crypto products on federally regulated exchanges.

Rising Interest in Prediction Markets

The latest decision by the CFTC on Bitnomial’s prediction market request indicates that prediction markets are becoming increasingly popular this year.

Supporting this view, data shared by DefiLlama shows that the prediction market Kalshi successfully achieved $52.7 billion in trading volume over the past month. Meanwhile, a blockchain-based prediction market achieved $2 billion in trading volume during the same period.

This achievement follows the approval of a prediction market to operate as an intermediary trading platform by the CFTC in November. This allows its users to access the platform through registered brokers, complying with U.S. market regulations.

The approval was obtained after the CFTC and the U.S. Department of Justice halted an investigation in July. The investigation examined whether the platform allowed U.S. users to trade and involved a search of the founder’s residence by the FBI.

Meanwhile, informed sources mentioned that the platform uses USDC stablecoin on the Polygon blockchain to finalize contracts. The company also recently reported forming new partnerships, including collaborations with sports and fantasy sports operators.