Nikolas Sargeant
TL;DR
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Binance.US plans to apply for a CFTC designated contract market (DCM) license in August.
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The license would allow the exchange to offer futures, options, and prediction market contracts to U.S. retail customers.
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Binance.US would compete with regulated prediction market operators including Kalshi, Polymarket US, Gemini, and Coinbase.
Binance.US is preparing to enter the rapidly growing U.S. prediction market industry by applying for a Commodity Futures Trading Commission (CFTC) license that would allow it to offer regulated event-based contracts to retail investors.
The exchange intends to submit an application for a Designated Contract Market (DCM) license in August, according to CEO Stephen Gregory, who announced the plan during the Rare Evo conference in Las Vegas. A Binance.US spokesperson confirmed the timeline.
CFTC License Would Expand Binance.US Derivatives Offerings
A Designated Contract Market license would enable Binance.US to operate a federally regulated marketplace offering futures, options, and event-based prediction contracts to U.S. retail customers.
The approval would significantly expand the exchange's derivatives business while bringing its prediction market offerings under CFTC oversight.
Prediction markets allow users to trade contracts tied to the outcome of real-world events, including elections, economic indicators, sporting events, and other developments.
If approved, Binance.US would enter an increasingly competitive market led by CFTC-regulated platforms such as Kalshi and Polymarket US.
Several major crypto firms have also moved into the sector in recent months. Earlier this year, Gemini secured a CFTC license to expand its regulated derivatives offerings, while Coinbase partnered with Kalshi to provide event contracts to U.S. customers.
The growing interest reflects rising demand for regulated prediction markets as exchanges look to diversify their product offerings beyond traditional cryptocurrency trading.
Robinhood Also Explores Prediction Markets
Competition in the sector could intensify further. Last week, The Wall Street Journal reported that Robinhood is in discussions with Crypto.com to integrate the crypto exchange's prediction market contracts into its brokerage platform.
The potential partnership would give retail investors another avenue to access event-based contracts through an established brokerage.
Despite growing industry momentum, prediction markets remain the subject of ongoing regulatory disputes.
More than a dozen U.S. state regulators continue to challenge the ability of prediction market platforms to offer contracts tied to sporting events and other outcomes.
Meanwhile, the CFTC maintains that it has exclusive federal jurisdiction over regulated event contracts, creating an ongoing legal conflict between federal oversight and state-level enforcement efforts.
As regulatory clarity continues to evolve, Binance.US is positioning itself to compete in one of the fastest-growing segments of the U.S. derivatives market while seeking to operate within the existing federal regulatory framework.
