Binance.US will apply in August for a Designated Contract Market license with the CFTC so it can offer prediction markets, CEO Steve Gregory said at the Rare Evo blockchain conference. The agency's records showed no pending application from the exchange as of Wednesday, and approval is not guaranteed. The plan sits inside a comeback strategy that follows years in which the exchange's US market share fell to nearly zero.
Binance.US will apply in August for a Designated Contract Market (DCM) license with the US Commodity Futures Trading Commission so it can offer prediction markets services to users, according to its leadership. CEO Steve Gregory told the Rare Evo blockchain conference on Wednesday that the license would let the exchange launch its own prediction market, in what could become a challenge to platforms like Kalshi and Polymarket.
DCM status covers futures and option contracts
Under CFTC guidelines, DCMs can legally trade "futures or option contracts based on any underlying commodity, index or instrument". Companies seeking the license must comply with 23 core principles from the agency, including having system safeguards, conducting record keeping and addressing conflicts of interest. Holding that status would let Binance.US run a derivatives exchange under CFTC oversight and potentially list event contracts for retail customers.
No pending application on CFTC records
As of Wednesday, the CFTC had no records showing a pending DCM application from Binance.US. Cointelegraph contacted a Binance.US spokesperson for comment but did not receive an immediate response.
Gregory disclosed the plan Wednesday during the Rare Evo conference in Las Vegas, according to Bloomberg, which cited a Binance.US spokesperson. Approval is not guaranteed, and the company has not disclosed a timeline for launching any products.
US market share fell to nearly zero
The planned application advances a broader comeback strategy centered on lower trading fees and an expansion beyond spot crypto trading. Gregory previously said the exchange was exploring retail derivatives and event based products as it attempts to regain market share lost during several years of regulatory uncertainty.
At its peak in 2022, Binance.US controlled roughly 20% of the US crypto exchange market, according to CoinDesk Indices data, and its share has since fallen to nearly zero. The global Binance exchange, which operates separately from the US company but shares branding and beneficial ownership, reached a $4.3 billion settlement with US authorities in 2023 over violations related to sanctions and money transmission rules.
Court ruling keeps event contracts in dispute
Prediction markets themselves remain caught in legal disputes. A federal court declined requests from the CFTC to block Wisconsin from enforcing its laws against sports event contracts, and it also rejected efforts by Kalshi and Crypto.com to intervene in the case.
The reported application would come more than a year after the US Securities and Exchange Commission dismissed its lawsuit against Binance, its US entity and former Binance CEO Changpeng Zhao over allegations that included misusing customer funds.
Sources: Cointelegraph.com News, Crypto Briefing, CoinGape
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