03.08.2026 15:09
Cryptocurrency exchange Binance.US will apply to obtain a Designated Contract Market (DCM) license from the U.S. Commodity Futures Trading Commission (CFTC) to offer prediction market services to its users. The exchange's CEO, Stephen Gregory, announced that the application will be submitted in August.
Gregory took the stage at the Rare Evo blockchain conference in Las Vegas to announce the plan. According to the CEO, the CFTC license will allow the exchange to launch its own prediction market and challenge platforms like Kalshi and Polymarket. Designated Contract Markets can legally list futures, options, and certain event contracts based on any underlying commodity, index, or instrument under CFTC rules.
Companies seeking a DCM license must comply with 23 core principles under the Commodity Exchange Act. These principles cover market surveillance, customer protection, financial resources, system security, recordkeeping, prevention of conflicts of interest, and safeguards against market manipulation. The review process often spans several months. There was no record of a Binance.US application on the CFTC's list of pending submissions. This aligns with Gregory's statement that the application would be filed in the coming month. Approval is not guaranteed, and the company has not shared a timeline for when any product might go live.
THE MOVE IS PART OF BINANCE.US'S RECOVERY STRATEGY
The planned application advances a broader recovery strategy based on low trading fees and moving beyond spot crypto trading. Gregory has previously said the exchange was exploring retail derivatives and event-based products to regain market share lost during a period of regulatory uncertainty spanning several years. The exchange aims to offer prediction markets alongside planned perpetual futures and aggressive fee cuts.
According to industry data, Binance.US controlled approximately 20% of the U.S. crypto exchange market at its peak in 2022. The company's share has since fallen to nearly zero. Binance.US operates separately from the larger global Binance exchange. The two companies share only the brand and ultimate ownership. The U.S.-based company lost significant trading volume following regulatory actions against the broader Binance organization. The global exchange reached a $4.3 billion settlement with U.S. authorities in 2023 over violations of sanctions and money transfer rules. A lawsuit by the U.S. Securities and Exchange Commission (SEC), which included allegations of customer fund misuse, was dismissed in 2025, clearing the way for the exchange to rebuild its product lineup.
THE PREDICTION MARKET IS HEATING UP, BUT OBSTACLES REMAIN
The prediction market sector has grown rapidly as financial and crypto companies race to offer event contracts tied to outcomes such as sports, elections, and economic data. According to one source, trading volume on CFTC-regulated platforms exceeded $25 billion in 2025. Exchanges approved approximately 1,600 event contracts that same year, compared to just 131 in 2021. Kalshi leads in volume, while Polymarket has also joined the competition within the U.S. Gregory will thus enter a market with competitors like Kalshi and Polymarket, which hold the majority of liquidity.
The industry is also subject to legal and regulatory debates. The CFTC submitted a new framework proposal for event contracts on June 10, with the comment period closing on July 27. State regulators pose a tougher obstacle. Sports and political contracts have led to lawsuits in many states over prediction markets. Parties are debating whether certain event contracts should be considered federally regulated derivatives or gambling products subject to state laws. Approval would give Binance.US a product that larger U.S. competitors already sell. The August application will be the first step on that path.