Binance US Eyes August Filing for CFTC Derivatives License Binance US is preparing to apply for a Commodity Futures Trading Commission (CFTC) Designated Contract Market (DCM) license in Augus
Binance US is preparing to apply for a Commodity Futures Trading Commission (CFTC) Designated Contract Market (DCM) license in August, with the aim of launching its own prediction markets platform. CEO Steve Gregory disclosed the plan at the Rare Evo blockchain conference in Las Vegas, saying the CFTC license would allow the exchange to launch its own prediction market in what could become a challenge to platforms like Kalshi and Polymarket.
A DCM designation is the regulatory framework that allows exchanges to list futures, options, and certain event contracts under CFTC oversight.Under CFTC guidelines, companies seeking to be licensed as a DCM must comply with 23 core principles from the agency, including having system safeguards, conducting record keeping, and addressing conflicts of interest.The company has not yet submitted its application, and any approval process could take months. CFTC review timelines vary, and there is no guarantee the application will be approved.
Prediction markets have soared in popularity, with two key platforms, Kalshi and Polymarket, gaining more traction during the World Cup and through sometimes-controversial bets about global events.Binance US is just the latest exchange to dive into prediction markets. Gemini obtained a CFTC license for the same purpose earlier this year, while Coinbase has partnered with Kalshi.
The company also plans to strengthen its platform through lower trading fees and new products, including perpetual contracts and event-based markets.At its peak in 2022, Binance US controlled roughly 20% of the US crypto exchange market, but its share has since fallen to nearly zero.The announcement represents another milestone in Binance US's efforts to rebuild its US business following years of regulatory challenges and reduced product offerings.
The industry remains subject to legal and regulatory disputes. State authorities, consumer groups, and traditional gaming operators have challenged whether certain event contracts should be treated as federally regulated derivatives or gambling products governed by state law.The CFTC presented a proposal to restructure the rules applicable to event contracts on June 10, 2026, with the public comment period closing on July 27, 2026.
Sources:Bloomberg: Binance US Wants to Join Prediction Markets Race With CFTC StampCoinTelegraph: Binance US to Attempt Prediction Markets Entry as CFTC-Licensed EntityCrypto Briefing: Binance US Plans CFTC Application in Prediction Market Expansion
