The U.S. Securities and Exchange Commission (SEC) has acknowledged a Form 1-N filing from North American Derivatives Exchange (Nadex), a step that signals Crypto.com’s progression toward offering single-stock futures in the United States, according to The Wall Street Journal. This development indicates the cryptocurrency exchange is navigating the regulatory landscape for a new product category, though the exact timeline for any potential launch remains uncertain.
Crypto.com CEO Kris Marszalek stated the company is “authorized” to bring single-stock futures to the market through its CFTC-regulated platform, OG.com. Marszalek also said the team is actively working with both the SEC and the Commodity Futures Trading Commission (CFTC) for this offering in the U.S. OG.com, a standalone prediction market platform, was launched in February.
Single-stock futures are financial contracts that allow traders to speculate on the future price of an individual stock without owning the underlying shares directly. The SEC document confirming the filing is dated September 16 and was made under Section 6(g) of the Securities Exchange Act of 1934.
Competitive Landscape in Derivatives
Crypto.com is not alone in seeking to introduce such products. Kalshi is also reportedly seeking regulatory approval for single-stock perpetual futures in the U.S., with plans to offer around 60 perpetual contracts tied to major stocks and ETFs. Similarly, Coinbase filed notice registrations with the SEC earlier this month to offer single-stock perpetual futures domestically, stating it is working with regulatory watchdogs.
These pursuits by crypto-related firms reflect a broader trend of exploring entry into traditional financial derivatives markets in the U.S. This push by newer platforms into areas often dominated by established financial institutions represents a notable shift.
Strategic Partnerships and Investments
In related business news, Robinhood announced an expansion of its partnership with Crypto.com and OG.com. Starting September 8, Robinhood began routing some football event contracts to OG.com. Furthermore, Robinhood Markets intends to take equity stakes in Crypto.com and OG.com once OG.com becomes an independent trading platform. The companies said these stakes are expected to be priced in line with Citadel Securities’ recent investment in Crypto.com Group, which valued the group at $20 billion.
Despite these steps, significant uncertainties remain regarding the exact timeline for Crypto.com’s single-stock futures launch in the U.S. The specific stocks and ETFs that Kalshi plans to offer contracts for, as well as the precise details of Robinhood’s equity stakes, are also yet to be fully clarified.
Why This Matters
The development signifies a potential expansion of crypto platforms into traditional financial derivatives, raising questions about regulatory oversight and market competition. Crypto.com is navigating a complex regulatory path to offer single-stock futures in the US, a move that, alongside similar efforts by competitors, signals a growing intersection of crypto and traditional finance, albeit with significant regulatory uncertainties.
Broader Context
Source materials place the factual news in this context: Single-stock futures are contracts linked to the future price of individual stocks. They allow traders to take positions on stocks through futures contracts rather than buying the underlying shares directly.
