The federally-regulated prediction market space is already crowded, and filings with the Commodity Futures Trading Commission (CFTC) suggest it could become even more so in the year ahead.
Over the past year, a number of firms have submitted applications to operate as a Designated Contract Markets (DCM), the regulatory approval required to list futures and event-based contracts in the U.S. The steady flow of DCM filings reflects growing interest in federally-regulated market structures, as event contract trading draws increased attention.
Not all of those applications are aimed at prediction markets. Some involve traditional derivatives trading or exchange infrastructure. But a closer look at several pending and recently approved DCM filings suggests some platforms could be positioned to offer regulated event contracts, either explicitly or as part of a broader trading stack.
17 DCM filings have been made since start of 2025
Since the beginning of 2025, the CFTC portal shows 17 DCM applications have been moving through the agency’s review process. Of those, seven have been approved, including some that have already made their mark in the prediction markets space, while 10 remain pending.
The entities that have been approved by the CFTC to operate as a DCM in the past year (starting with the most recent) are:
- Xchange Alpha (designated January 2026)
- Gemini Titan (December 2025; the Gemini crypto exchange launched prediction markets shortly after)
- Aristotle Exchange (September 2025; application filed by PredictIt’s parent company)
- Electron Exchange (August 2025)
- Railbird Exchange (June 2025; acquired by DraftKings)
- QCX LLC (July 2025; acquired by Polymarket and operates as Polymarket US)
- Quanta Exchange (May 2025)
The current pending DCM applications in the portal are:
- Sporttrade
- Juice Exchange
- Water Street Labs
- Ludlow Exchange (affiliated with the Novig sports exchange)
- Optex Markets
- XV Exchange
- tZERO DCM
- ProphetX
- RSBIX
- OneChronos Markets
While some pending filings appear to focus on traditional derivatives, others involve companies that have signaled interest in offering event contract trading.
XV Exchange to leverage STX sports exchange model
XV Exchange entered the CFTC’s filings portal in December, submitting an application to operate as a DCM. The filing, which remains pending, places XV among a growing group of applicants seeking approval to list event contracts under federal oversight.
In addition to its DCM application, XV Exchange has also submitted filings to operate XV Clear as a Derivatives Clearing Organization (DCO). A DCO designation would allow the company to clear trades executed on its exchange. Together, the dual filings suggest XV is pursuing a vertically integrated model in which it would both list and clear event contracts, rather than relying on a third-party clearinghouse.
XV Exchange is affiliated with STX, a real-money, regulated sports betting exchange operating in Canada. XV plans to leverage technology developed for STX’s exchange platform, adapting it for the U.S. regulatory environment while operating as a standalone U.S. entity.
XV Exchange CEO Justin Deutsch, who also serves as founder and CEO of STX, confirmed to DeFi Rate that XV is intended to operate as a prediction market platform rather than a conventional derivatives exchange. He also confirmed that the platform’s planned offerings would extend beyond sports-related markets, indicating an intent to list event contracts across multiple categories.
tZERO could bring crypto-native lens to event contract trading
In November, tZERO entered the CFTC portal, submitting applications to operate both a DCM and DCO. If approved, the pending applications would allow tZERO not only to list derivatives contracts but also to clear them, positioning the firm to operate a fully integrated exchange and clearinghouse. The DCM filings are not publicly accessible; a link to the accompanying redacted application PDF currently returns a “404 Page Not Found” alert.
While the available DCO filings themselves do not spell out specific product plans, tZERO executives have said the licenses could support a wide range of derivatives products, including prediction markets.
“We are looking at derivatives including predictive markets, futures and options tied to both digital assets and traditional products,” tZERO CEO Alan Konevsky said in an interview last year with Markets Media.
tZERO’s existing business provides some context for how any prediction market products might work. The firm operates regulated infrastructure for tokenized and digital securities, including broker-dealer services and alternative trading systems (ATS), with a focus on the back-end systems that handle how trades are executed and settled. That framework is designed to support products tied to both digital assets and traditional financial instruments.
If tZERO were to introduce prediction markets, they could be positioned as an extension of that approach. While the company has not said it plans to tokenize event contracts, executives have said the firm’s derivatives ambitions extend across both digital and traditional asset classes.
Newly approved Xchange Alpha targets intermediated futures launch
Xchange Alpha was the most recent exchange to receive DCM approval from the CFTC. Dated Jan. 30, the designation clears a key regulatory hurdle for the firm’s planned launch of a federally-regulated futures venue.
The company’s DCM filings show that Xchange Alpha plans to operate a central limit order book-based exchange and has designated MIAX Futures Exchange, LLC to provide clearing services for all listed contracts. MIAX’s role is notable given its broader position in the prediction market and derivatives landscape. Robinhood and Susquehanna International Group acquired majority stakes in MIAXdx, the MIAX group’s derivatives exchange and clearing business, as part of a deal that lays the groundwork for Robinhood to build and operate its own regulated event contract exchange.
In announcing the DCM approval on LinkedIn, Xchange Alpha’s Chief Regulatory Officer Bella Rozenberg described the platform as a “fully intermediated futures exchange,” suggesting customer access would be routed through Futures Commission Merchants (FCMs) rather than offered directly to users. In the same post, Rozenberg said Xchange Alpha plans to list “traditionally structured futures contracts” and is targeting a late summer 2026 launch, while also teasing future product development by adding, “Please stay tuned for more details on our innovative contracts.”
Rozenberg brings deep regulatory experience to the exchange. According to her LinkedIn account, Rozenberg spent nearly 14 years at the CFTC, including serving as associate director for market oversight in the agency’s Office of the General Counsel. Rozenberg was also senior counsel and head of the Regulatory and Legal Practice Group at the International Swaps and Derivatives Association.
DeFi Rate reached out to Rozenberg to ask whether Xchange Alpha intends to eventually list event contracts for trading or whether the platform should be understood as focused solely on traditional futures products. She declined to comment, offering instead to revisit the question closer to launch.
Taken together, Xchange Alpha’s filings and public statements point to a launch centered on conventional, broker-intermediated futures trading. At the same time, its DCM approval and third-party clearing arrangement would allow the exchange to pursue prediction market products in the future, should it decide to expand beyond traditional derivatives.
Could CFTC be speeding up DCM approvals?
Rozenberg said in her post that the length of time from Xchange Alpha’s submission to approval was approximately 204 days. She noted that the timeline aligns with the CFTC’s statutory 180-day review framework and is notable for its relative efficiency compared with some prior approvals.
Some entities had to wait years for DCM approval. QCX, which was later acquired by Polymarket for its U.S. exchange and clearinghouse, submitted its DCM application more than four years before approval was granted in July of last year, according to founder Sergei Dobrovolskii. Meanwhile, Bloomberg reported that Aristotle Exchange had its DCM filings pending since late 2021 before receiving approval last September.
While approval delays could be caused by requests for further or corrected paperwork and Rozenberg’s regulatory experience could have facilitated a faster trajectory for Xchange Alpha, the expedited approval may reflect a more streamlined review approach.
Former interim CFTC chair Caroline Pham, who held the position for most of 2025, oversaw the agency when Aristotle, QCX, Gemini and others received DCM approvals after longer waits. On Rozenberg’s LinkedIn post, Pham congratulated her and wrote, “Another approval in approximately 7 months,” suggesting sped-up approvals were a goal during her tenure.
That more efficient approval process could well continue under new CFTC chair Mike Selig’s oversight. In comments at a recent public “harmonization” meeting with SEC chair Paul Atkins, Selig said he was pursuing a new event contract rulemaking process and other changes, indicating a more platform-friendly approach that would encourage innovation in the sector. Continuing to provide more expedited approvals would certainly fit that initiative.
