ProphetX applies to the CFTC to launch a new prediction market

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ProphetX has utilized to the U.S. Commodity Futures Buying and selling Fee (CFTC) to enter the bustling world of prediction markets.

The model, previously working as Prophet Exchange and known for its sweepstakes mannequin throughout dozens of states, had buyers together with MIXI and Sharp Alpha.

ProphetX enters prediction market fray

In a submit throughout social media, Dean Sisun, co-founder and CEO of ProphetX, introduced the appliance.

Massive day at ProphetX.

We’ve formally filed with the @CFTC to grow to be a Designated Contract Market and Derivatives Clearing Group.

Step one towards launching a regulated, sports-native prediction market within the U.S.

Right here’s what which means https://t.co/SUWoy0cAUz pic.twitter.com/JhWsKiznDH

— ProphetX (@PlayProphetX) November 10, 2025

“Very thrilling information, we’ve simply formally introduced our CFTC purposes to grow to be a Designated Contract Market (DCM), and a Derivatives Clearing Group (DCO).”

The CFTC regulates all the outcomes markets working in america and has been dragged into state-to-state legal battles in regards to the jurisdiction of federal or native authorities guidelines.

Sisun didn’t count on ProphetX’s entry into the predictions market recreation to be anytime quickly, as he stated the internal workings of the approval would go into the next yr. On the time of writing, the CFTC has not but accepted the appliance for DCM or DCO standing, although the evaluation is underway.

“We’ll be working with the CFTC and its employees for this yr and into 2026, as we deliver our regulated sports activities prediction market nationwide, to 50 states.”

As we reported, sweepstakes and their viability have been challenged throughout a number of states, however most notably in California and New York, the place the sagas have been probably the most important. ProphetX has weathered that regulatory storm and has deep connections to the state route for approval, which may show helpful in dealing with the crimson tape.

“This has been a grind for us; we’ve labored for 7 years to deliver our mission to all 50 states. Beginning within the UK, below the UKGC, then to New Jersey below the DG, after which via a sweepstakes mannequin,” concluded Sisun.

Jake Benzaquen, the opposite ProphetX co-founder, spoke by way of a cellphone interview to Sportico in regards to the firm coming into the predictions house.

He confidently stated, “We imagine that our underlying mannequin and expertise and liquidity that we’ve in place are principally able to be operated below CFTC oversight.”

Prediction markets are full of competitors

Kalshi and Polymarket bring billion-dollar valuations to the prediction market house, which ProphetX must take care of.

There’s additionally the emergence of corporations like Crypto.com and a number of sports activities betting corporations firing up their very own end result wagering fashions.

So the house is comparatively crowded with rivals, however Benzaquen, Sisun, and ProphetX hope their lengthy journey and established backers will assist.

“That’s (the choice) clearly in the end up for the CFTC to determine. However the way in which that we constructed our product, and the institutional-grade liquidity that we’ve on the platform, we really feel is able to go and plug and play,” concluded Benzaquen.

Featured picture: ProphetX

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