Binance.US plans to apply for a Designated Contract Market (DCM) license from the U.S. Commodity Futures Trading Commission (CFTC) next month, CEO Stevie Satow said during the Rare Evo Conference. The planned filing would allow the exchange to pursue regulated prediction market services for U.S. customers.
The company has been working to expand beyond spot cryptocurrency trading as part of its wider business plans. Binance.US is reducing trading fees and looking at products, including perpetual contracts and event-based markets, as possible areas for future growth.
The planned CFTC filing was reported by Eleanor Terrett after she spoke with Binance.US CEO Steve Gregory during the blockchain conference. Gregory said the exchange wants to add prediction markets as it continues developing its platform.
CFTC License Could Open Prediction Market Services
A DCM license from the CFTC would allow Binance.US to provide regulated contracts tied to future events. Users in prediction markets trade on possible outcomes related to areas such as elections, economic data, sports, and other events.
The exchange has not submitted the license request yet, and approval from the CFTC is not guaranteed. The review process may take several months before regulators decide whether Binance.US can offer prediction market contracts to American users.
Binance.US has also pointed to retail derivatives and other financial services as areas under review. The company’s plans come after a major decline in its U.S. exchange market position, which dropped from 20% in 2022 to nearly zero.
Binance.US Expansion Meets Market and Legal Challenges
The expansion plan places Binance.US in closer competition with other crypto companies exploring broader financial services. Coinbase has already discussed its “Everything Exchange” plan, which includes crypto assets, stocks, derivatives, and prediction markets.
Binance.US operates separately from Binance.com. The global Binance business reached a $4.3 billion settlement with U.S. regulators in 2023 after admitting violations involving the Bank Secrecy Act, money transmission registration, and U.S. sanctions regulations.
Prediction markets are also facing regulatory disputes in the United States. The CFTC and market operators, including Kalshi and Polymarket, have faced legal challenges from state regulators over event-based contracts.
