Binance.US is set to apply for a Commodity Futures Trading Commission (CFTC) designated contract market (DCM) license in August, advancing its plan to offer regulated prediction markets to U.S. retail customers. CEO Stephen Gregory announced the timeline at the Rare Evo conference in Las Vegas, with a company spokesperson confirming the move.
The DCM license would allow Binance.US to list futures, options, and event-based contracts under federal oversight, placing it in direct competition with existing CFTC-licensed platforms like Kalshi and Polymarket US. The application marks a key step in the exchange’s broader comeback strategy after regulatory setbacks, as it works to regain the roughly 20% U.S. market share it once held. Gregory has previously outlined plans to expand into derivatives, perpetual futures, and prediction markets to diversify revenue beyond spot crypto trading.
Competition in the space is intensifying. Gemini obtained a CFTC license earlier this year, while Coinbase partnered with Kalshi to offer event contracts. Traditional brokerages are also entering: Robinhood reported $156 million in event contract revenue last quarter, driven by 13.6 billion contracts traded, and has discussed adding Crypto.com's prediction markets to its app.
Despite the growth, legal uncertainty looms. A federal judge in Wisconsin recently denied the CFTC’s request to block state gambling law enforcement against platforms like Kalshi and Polymarket, ruling that sports event contracts did not clearly qualify as swaps. Conflicting court rulings in Minnesota, New York, Michigan, and Washington have left operators without a uniform legal standard. Meanwhile, 44 state attorneys general urged the CFTC to withdraw proposed amendments to Rule 40.11, arguing the changes overstep federal authority.
