# ProphetX

**Type:** Prediction market exchange  
**Status:** Pre-launch (DCM/DCO applications pending)  
**Founded:** 2024-2025  
**Focus:** Sports event contracts with regulatory compliance-first approach  

## Overview

ProphetX is the first U.S. exchange purpose-built specifically for sports event contracts, taking a regulatory compliance-first approach rather than the operate-and-litigate strategy of earlier entrants.

## Regulatory Strategy

ProphetX filed applications with the CFTC in November 2025 to register as both a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO). This dual registration approach positions ProphetX as a fully regulated exchange before launching operations.

In April 2026, ProphetX filed ANPRM comments proposing a Section 4(c) "conditions-based framework" for sports event contracts. This proposal would use the CFTC's exemptive authority under Section 4(c) of the Commodity Exchange Act to create a uniform federal standard specifically for sports betting markets, codifying recent CFTC staff no-action relief into binding requirements.

## Competitive Positioning

ProphetX differentiates itself from Kalshi and Polymarket through:
- Purpose-built infrastructure for sports contracts (not general prediction markets)
- Pre-launch regulatory approval rather than post-launch litigation
- Active participation in CFTC rulemaking to shape regulatory frameworks
- Emphasis on consumer protection standards, anti-manipulation mechanisms, and league partnership requirements

## Timeline

- **2024-2025** — Company founded
- **2025-11** — Filed CFTC applications for DCM and DCO registration
- **2026-04-20** — Submitted ANPRM comments proposing Section 4(c) conditions-based framework for sports event contracts