What are Crypto.com prediction markets? Who runs them, how they’re regulated, and what traders should know

Crypto.com’s prediction page says its Prediction product is an event contract offered by Crypto.com | Derivatives North America (CDNA), “a CFTC-regulated exchange.” Its September 2025 announcement says CDNA is “the doing business as name for North American Derivatives Exchange, Inc.,” registered as a designated contract market and a derivatives clearing organization, and that Foris DAX Markets is now registered with the National Futures Association (NFA) as a futures commission merchant.

North American Derivatives Exchange’s draft rulebook says it operates two brands, CDNA and OG.com (OG Prediction Markets). Trading takes a separate account: Crypto.com’s Prediction Trading article says to “set up an account with Crypto.com | Derivatives North America.”

Webull’s risk disclosure names CDNA as one of two exchanges it may use; the Webull profile has the detail. What courts and regulators have done, state by state, is in Crypto.com legal status. This page covers the prediction markets, not Crypto.com’s crypto products, which have their own tax pages.

Crypto.com’s payout page says the contracts settle at “$1.00 (if you’re correct) or $0.00 (if you’re incorrect)” and each “typically trades between $0.01 and $0.99.” Its prediction page lists politics, financials, culture, economics and sports. The announcement calls CDNA’s existing offering “fully collateralized.”

If the outcome is known at expiry, Crypto.com’s help article says the contract is settled within 24 hours; otherwise it settles once the outcome becomes available. The product is “currently available in the United States only.” After an order fills, the amount paid, fees included, “will be reflected in your Order History page.”

For sports and prediction singles, Crypto.com’s Sports Event Trading article prints a taker fee of 0.07 × C × P × (1 − P) and a maker fee of 0.0175 × C × P × (1 − P), where C is the number of contracts and P is the price. For crypto, FX, commodities and indices it prints $0.02 per contract, taker or maker. A contract that settles in the money has its fees waived, and one that settles out of the money has none; closing early is charged.

The same article’s worked example buys 10 contracts at $0.19 for an estimated total of $2.075, which is $1.90 plus $0.175, from a $0.0175 exchange fee per contract and a $0 technology fee. Put into the printed formula, the same order comes to about $0.11 for a taker and $0.03 for a maker. Crypto.com’s learn page adds that for “markets that use a $1 contract size, there is a $0.02 trade fee, and no other fees.” Crypto.com has not published how these fit together, so the question is unsettled, and each figure here is shown as printed.

The examples show a net estimated total and a realized profit or loss that include the fee. The article doesn’t say whether fees are added to cost or taken from proceeds.

Crypto.com’s 1099 article, dated February 19, 2026 and written for the 2025 tax year, says it may issue a Form 1099-B to a U.S. person “who traded contracts,” with Box 1A reading “Regulated Futures/Options” and “contracts traded on Crypto.com.” Box 8 is profit or loss realized on closed contracts, Boxes 9 and 10 are unrealized profit or loss on open contracts at the end of the prior and current year, and Box 11 is their sum. The article never uses the words event contract, prediction, derivatives or CDNA, and no Crypto.com page we read says which form, if any, covers trades on CDNA. It adds, “It is your responsibility to determine the proper categorization of your transactions and tax situation.”

Two Crypto.com learn pages touch the tax treatment. One page says “regulated event contracts traded on a DCM may qualify for Section 1256 tax treatment.” Another page says prediction market earnings “generally fall under capital gains tax treatment in most jurisdictions.” Neither is a form or an IRS position, and there is no IRS guidance on how event contracts are taxed. Of the people we’ve seen file, three routes are the most common, and Prediction market taxes compares them on one year. Why prediction markets don’t send 1099s covers what each venue says.

The one record Crypto.com names for these trades is Order History. Crypto.com says it can provide your transaction history and still advises keeping independent records. Realize does not connect to Crypto.com, so the prediction market tax calculator works from a year’s net result taken from these records.