Binance.US intends to apply for a license from the US Commodity Futures Trading Commission (CFTC) to operate its own prediction market. Chief Executive Officer Steve Gregory announced the plan, stating the company will submit the application in August.
The specific license sought is a Designated Contract Market (DCM) designation. Under CFTC guidelines, DCMs are permitted to legally trade futures or option contracts based on any underlying commodity, index, or instrument.
Entities seeking a DCM license must comply with 23 core principles established by the CFTC. These requirements include maintaining system safeguards, ensuring proper record keeping, and addressing potential conflicts of interest.
Market context and timing
Gregory made the announcement at the Rare Evo blockchain conference. The proposed platform would enter a market where competitors such as Kalshi and Polymarket already operate.
As of the day of the announcement, the CFTC had no records indicating a pending DCM application from Binance.US. A spokesperson for the exchange did not provide an immediate response to requests for comment.
This development occurs more than a year after the US Securities and Exchange Commission (SEC) dismissed its lawsuit against Binance, its US entity, and former CEO Changpeng Zhao. The previous legal action involved allegations including the misuse of customer funds.