The crypto company has reportedly applied for two licenses with the US commodities regulatory as the courts weigh prediction markets cases.

Blockchain.com has reportedly applied to the US Commodity Futures Trading Commission (CFTC) for approval of prediction market offerings and crypto derivatives.

CNBC reported Friday that the exchange filed for two licenses with the CFTC for event contracts and crypto derivatives offerings for US-based retail and institutional investors. The licenses, as a designated contract market (DCM) and futures commission merchant (FCM), would allow Blockchain.com to operate as a futures exchange for event contracts and a broker for derivatives contracts, respectively.

Blockchain.com announced in July that it planned to partner with Polymarket as part of a prediction markets integration on the company’s app. However, if approved, the CFTC license would allow the exchange to offer its own marketplace with event contracts.

The question of oversight and enforcement of prediction market platforms like Kalshi and Polymarket is currently being tested in US courts, as many state-level authorities have lawsuits pending against companies for alleged violations of laws betting on sports and elections. Last month, New Jersey officials filed a petition with the US Supreme Court to weigh in on their case against Kalshi, which could resolve disputes between federal and state regulators.

Related: Prediction markets hit new high as Polymarket enters Sam Altman’s World

Blockchain.com was also reportedly considering an initial public offering with a valuation of up to $6 billion, expecting to raise $500 million.

This week, CFTC Chair Michael Selig justified the agency’s attempts to move forward with cryptocurrency regulation through rulemaking rather than legislation passed by Congress, invoking the downfall of the FTX exchange.

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