What to know:
- Binance.US plans to seek a CFTC license next month for its US prediction market push.
- CFTC approval would let Binance US offer futures, options and retail event contracts.
- Wisconsin ruling shows state legal challenges remain for US sports prediction markets.
Binance.US intends to apply for a license from the Commodity Futures Trading Commission next month before venturing into prediction markets. The license will be for designated contract markets. The will allow Binance.US to offer futures, options, and other derivatives under CFTC regulations.
A designated contract market must satisfy 23 federal core principles. These cover trading surveillance, financial resources, customer safeguards, and controls against manipulation. The CFTC’s public application list does not currently include Binance.US.
The gap confirms the assertion by Gregory regarding the upcoming filing. There is no guarantee of approval. Binance.US has not made any public announcements concerning its launch date or even the type of event contracts it will be listing.
Why Is Binance.US Expanding?
The filing is consistent with the overall approach of the exchange. Lower transaction fees and other services apart from spot crypto trading have been mentioned by Gregory. Retail derivatives and event-based products have also been highlighted as areas to be considered.
Also Read: Elon Musk Eyes August 7 Launch for Grok 4.6 as AI Race Heats Up
Binance.US accounted for 20% of the total US crypto exchange market in 2022. This figure has since fallen to nearly zero. It should be noted that the entity runs independently of Binance.com.
The global operations of Binance settled for $4.3 billion with U.S. regulators in 2023. They admitted violations relating to the Bank Secrecy Act, money transmission registration, and U.S. sanctions regulations. The DOJ named Binance Holdings Limited, the owner of Binance.com, as the pleading company.
Coinbase has already moved past the traditional crypto exchange services. Its Everything Exchange plan involves crypto assets, stocks, derivatives, and prediction markets. Binance.US has yet to make any such announcement.
Prediction Markets Face State Challenges
Prediction markets involve event contracts associated with results related to sports events, politics, and financial data. According to the CFTC, registered exchanges constitute derivative markets. Certain states believe that certain contracts related to sports games fall into their gambling jurisdiction.
Wisconsin received a green light from the court to enforce its gambling regulations regarding the regulation of sports prediction markets. In fact, the court refused to grant the CFTC’s request to halt the state’s enforcement during the ongoing legal process.
The CFTC filed a lawsuit against Wisconsin when it filed cases against Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase due to the fact that the commission claims that federal law grants it exclusive jurisdiction over listed event contracts.
Binance.US has to submit its application and show its compliance prior to providing its products through a designated market. The CFTC does not have any information about the filing by the company. Prediction market expansion is thus an idea without any timeline.
Also Read: Ethereum Institutional Scores Major 2026 Funding Win
Be the first to comment