Prospect Markets partners with Crypto.com for U.S. prediction platform

The partnership establishes Prospect Brokerage USA LLC as a Commodity Futures Trading Commission-registered introducing broker. By connecting customers directly to contracts listed by Crypto.com Derivatives North America (CDNA), the firm avoids the heavy regulatory burden of building an independent exchange. This model mirrors a broader industry trend where financial platforms seek established clearing partners to bypass the need for proprietary market operations.

Johnny Chen, CEO of Prospect Markets, described the move as a company-defining milestone that provides a critical entry point into the U.S. market. The venture arrives as prediction markets experience explosive growth, fueled by high-profile events like the FIFA World Cup. Bernstein analysts project the sector could reach $240 billion in volume by 2026, eventually scaling toward $1 trillion annually by 2030.

Despite the growth, the platform faces a complex regulatory landscape. Federal regulators maintain that event contracts fall under derivatives law, yet state gaming authorities continue to challenge this, arguing that such products function as sports wagering. While Prospect moves forward with its launch plans, legal disputes between federal agencies and state gaming commissions remain ongoing, potentially shaping the future of how these contracts are distributed to American consumers.