TLDR
- Binance.US plans to apply for a CFTC designated contract market license next month.
- The license could allow Binance.US to list event contracts for U.S. retail customers.
- CEO Stephen Gregory disclosed the plan at the Rare Evo conference in Las Vegas.
- Binance.US is expanding beyond spot crypto trading into prediction markets and derivatives.
- Prediction market rivals Kalshi and Polymarket already compete in the U.S. market.
Binance.US plans to seek a key CFTC license next month as the exchange moves beyond spot crypto trading and targets the fast-growing prediction market sector.
Binance.US Seeks Derivatives Exchange License
Binance.US Chief Executive Stephen Gregory said the company plans to apply for designated contract market status from the Commodity Futures Trading Commission next month. The disclosure came during the Rare Evo conference in Las Vegas.
A designated contract market license would allow Binance.US to operate a federally regulated derivatives exchange. The approval could also let the platform list event contracts for U.S. retail customers under CFTC oversight.
Event contracts allow traders to take positions on outcomes tied to sports, elections, economic data, and other measurable events. These products have gained wider attention as prediction markets draw more retail and institutional activity.
The planned application has not yet appeared on the CFTC’s public list of pending designated contract market filings. Binance.US has not provided a launch timeline, and regulatory approval remains uncertain.
Applicants must meet CFTC requirements covering market surveillance, customer protection, financial resources, system safeguards, and protections against manipulation. The review process can take several months, depending on the filing and agency feedback.
Comeback Plan Moves Beyond Spot Crypto
The planned CFTC filing forms part of Binance.US’s broader effort to rebuild market share. The exchange has been working to expand products, reduce fees, and move beyond basic spot crypto trading.
Gregory has previously said Binance.US is exploring retail derivatives and event-based products. The strategy could give the platform new revenue sources after several years of regulatory pressure reduced trading activity.
Binance.US once held about 20% of the U.S. crypto exchange market in 2022. Its market share later fell close to zero after regulatory actions involving the broader Binance organization.
Binance.US operates separately from the global Binance exchange, although both businesses share branding and beneficial ownership. The global exchange reached a $4.3 billion settlement with U.S. authorities in 2023 over sanctions and money transmission violations.
The exchange is now entering a crowded prediction market field. Kalshi already holds strong volume across regulated event contracts, while Polymarket has returned to compete in the U.S. market.
Trading across CFTC-designated venues passed $25 billion in 2025. Exchanges certified about 1,600 event contracts during the year, compared with 131 in 2021.
Prediction Market Rules Remain Under Review
Prediction markets continue to face legal and regulatory questions in the United States. State authorities, consumer groups, and gaming operators have challenged whether some event contracts should fall under federal derivatives rules or state gambling laws.
The CFTC has also reminded regulated markets that event contracts must follow product submission rules. Venues must also meet market integrity and anti-manipulation standards.
The agency proposed a new framework for event contracts on June 10. The comment period closed on July 27, leaving market operators waiting for further direction.
Polymarket also announced the launch of the Polymarket Institute, a research initiative focused on prediction markets. The project will support academic work on forecasting, market design, information flows, and data access.
Kai Brusch, Managing Director of the Polymarket Institute, said, “Prediction markets are becoming an important part of the information ecosystem, and the field needs serious research infrastructure to match that growth.”
Brian Jabarian, Scientific Director of the Polymarket Institute, said,
“The science of prediction markets is still in its earliest chapters, and that is precisely what makes it worth pursuing with institutional rigor.”
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