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Sporttrade submits DCM and DCO applications to CFTC

Sporttrade represents the first operator to apply for DCM registration while overseeing a state-regulated platform, currently available in New Jersey, Colorado, Iowa, Arizona and Virginia.

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Sporttrade submits DCM and DCO applications to CFTC
Key Points
The operator anticipates receiving approval for its DCM and DCO applications in 2026, but is still subject to required registration and licensure
Founder and CEO Alex Kane stated federal registration will allow Sporttrade to ‘finally unlock (its) full potential’

Sporttrade has submitted designated contract market (DCM) and derivatives clearing organization (DCO) applications to the Commodity Futures Trading Commission (CFTC), anticipating regulatory and licensing approval in 2026. 

"Today marks the opening of an incredibly exciting chapter of the Sporttrade journey, one that facilitates a return to our original vision,” Sporttrade Founder and CEO Alex Kane said. 

"The CFTC's market-based regulatory framework enables Sporttrade to provide market participants an elevated level of efficiency, transparency and consumer protection relative to what we've been able to offer to date."

Sporttrade represents the first operator to apply for DCM registration while also overseeing a state-regulated platform, which is currently available in New Jersey, Colorado, Iowa, Arizona and Virginia.

Kane continued: "We had originally constructed our venue under the assumption that the sports trading vertical would follow the trajectory of most other electronic markets, one towards efficiency and transparency powered by broker intermediation and institutional participation.

"Federal registration will thus allow us to finally unlock the full potential of our natively-built exchange, clearing and broker technology in our pursuit to always put the customer first."

Despite anticipating approval for both applications in 2026, Sporttrade is still subject to all required registration and licensure under the CFTC. 

On February 4, Crypto.com launched its own independent prediction markets platform, OG, offering bettors event contracts registered under the CFTC and an exclusive $500 rewards offer to the first one million users.

OG will be powered by Crytpo.com and Derivatives North America, a CFTC-registered exchange and clearinghouse serving as an affiliate of Crypto.com, and include event contracts on sports, entertainment, finance, politics, culture and entertainment.

Good to know

Coinbase’s prediction market platform, announced in tandem with Kalshi last December, officially launched across all 50 US states on January 29, covering sports, entertainment and politics

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