Binance.US to Seek CFTC Designated Contract Market License in August for Prediction Markets Push

Binance.US plans to apply next month for a designated contract market license from the Commodity Futures Trading Commission, a step that would let it run its own prediction market. CEO Stephen Gregory reportedly disclosed the plan Wednesday during an on-stage interview at the Rare Evo conference in Las Vegas.

A DCM is the CFTC’s core authorization for a federally regulated exchange to list futures, options and event-based contracts. Applicants must comply with 23 core principles covering market surveillance, recordkeeping, customer protection, financial resources, conflicts of interest and safeguards against manipulation.

Event contracts have become one of the fastest-growing products in US retail trading, which is why Binance.US is chasing one.

The field is already congested. Gemini secured a CFTC license for prediction markets earlier this year, Coinbase partnered with Kalshi, and Robinhood built Rothera, a CFTC-licensed exchange and clearinghouse it runs as a joint venture with Susquehanna International Group. Kalshi and Polymarket’s US arm remain the volume leaders.

The category’s legal foundation remains contested. More than a dozen state regulators argue that sports-linked event contracts are gambling products subject to state licensing, while the CFTC maintains exclusive federal jurisdiction over event contracts traded on registered exchanges. The agency has sued nine states, including Arizona, New York and Illinois, and last month proposed its first formal rule for vetting event contracts.

Related Listen: DEX in the City: How Kalshi’s Rough Week Became a Federal Fight for Prediction Markets

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