Sporttrade Applies For DCO and DCM Registration Through CFTC

Sporttrade has submitted applications to the CFTC for designated contract market (DCM) and derivatives clearing organization (DCO) registration. The filings position the operator to expand beyond its current model, with licensing and regulatory approval expected sometime in 2026.

The company currently operates a state-regulated sports trading platform across New Jersey, Colorado, Iowa, Arizona and Virginia. With these federal registrations, Sporttrade can transition to an exchange-style framework under the CFTC’s oversight.

CEO says move returns company to original vision

Founder and CEO Alex Kane described the applications as a turning point for the business.

“Today marks the opening of an incredibly exciting chapter of the Sporttrade journey, one that facilitates a return to our original vision,” 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 is the first operator to pursue DCM registration while also running a state-regulated platform. Kane added that the company’s infrastructure was built in anticipation of sports trading evolving like traditional financial markets.

“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,” he said.

Federal approval could unlock new technology stack

According to Kane, the approvals would allow Sporttrade to operate under a unified regulatory framework.

“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,” he said.

Despite the optimism, the company remains subject to the full CFTC review process, with licensing and regulatory approvals still pending.

Prediction markets competition continues to grow

Sporttrade’s move follows intensifying competition across the prediction markets ecosystem. On February 4, Crypto.com launched its own independent platform called OG, offering CFTC-registered event contracts tied to sports, entertainment, politics, finance and culture.

The platform is powered by Crypto.com and Derivatives North America, offering a $500 reward to the first one million users.