Share 
Gaming Edge’s TL;DR
- ProphetX says it has received approval from the US Commodity Futures Trading Commission to register as both a Designated Contract Market and a Derivatives Clearing Organization.
- The immediate takeaway is not a launch date but rather a major regulatory step that could expand access to sports-related event contracts under federal oversight.
According to ProphetX, the Commodity Futures Trading Commission (CFTC) has approved it to launch as a sports-native, direct-clearing prediction market in the US.
The company can now register as a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO), allowing it to directly trade, clear, and settle event-based contracts under the CFTC’s regulatory framework.
ProphetX submitted request in November 2025
ProphetX CEO and co-founder Dean Sisun said the approval positions the company to become “the first sports-native direct-clearing prediction market in the United States.”
He also said the company can now expand its sports event market offerings to Americans nationwide while competing on what he described as a level regulatory playing field.
This is another sign of how prediction markets continue to develop as a gambling-adjacent category under federal oversight rather than through traditional state gaming channels.
ProphetX said it submitted its DCM and DCO applications in November 2025. The company also said it filed a comment letter in April 2026 in response to the CFTC’s Advance Notice of Proposed Rulemaking on Prediction Markets.
The company described this approval as part of a longer regulatory path that began in the United Kingdom in 2018, where it says it was licensed as a peer-to-peer marketplace for sports event trading.
No launch date announced
For now, the practical impact for consumers is limited because ProphetX has not announced when its US market will launch.
It’s also not known which event contracts the company plans to offer in the US or whether the CFTC attached any conditions to the approvals.
ProphetX says its platform includes an RFQ Parlay Mechanism that lets users construct and price multi-event combinations directly with counterparties. How that feature may appear in a US launch remains to be seen.
Based on reporting by Casino City Times.
