- Binance.US plans to apply for a CFTC Designated Contract Market license in August to expand into regulated derivatives.
- The exchange aims to add prediction markets, futures, and perpetual products as part of its broader recovery strategy.
- Binance.US joins Coinbase, Gemini, and Robinhood in pursuing the growing U.S. prediction market sector.
Binance.US plans to apply for a Commodity Futures Trading Commission Designated Contract Market license next month, Chief Executive Officer Stephen Gregory said during the Rare Evo conference in Las Vegas. According to journalist Eleanor Terrett, the move supports the exchange’s broader recovery strategy by expanding into prediction markets and perpetual products while reducing trading fees beyond its spot trading business.
Gregory Outlines Expansion Strategy
Gregory said the exchange intends to submit its application in August. A Binance.US spokesperson also confirmed the planned filing. If approved, the license would allow Binance.US to operate a federally regulated derivatives exchange.
It could then offer futures, options, and event-based contracts to retail customers under CFTC oversight. The planned expansion forms part of Binance.US’ effort to diversify its products. Alongside prediction markets, the company also plans to introduce perpetual trading products.
Competition In Prediction Markets Grows
The announcement comes as more crypto firms expand into regulated event contracts. Gemini secured a CFTC license earlier this year, while Coinbase partnered with Kalshi to provide prediction markets.
Meanwhile, Bloomberg reported that Robinhood is discussing a partnership with Crypto.com to add prediction market contracts to its platform. As competition increases, Binance.US is seeking entry into the same growing market.
Gregory previously said the exchange wants to regain market share after several years of regulatory challenges. At its peak in 2022, Binance.US held roughly 20% of the U.S. crypto exchange market before its share declined significantly.
Regulatory Process Remains Ahead
Although Binance.US plans to file next month, the application has not yet appeared on the CFTC’s public list of pending Designated Contract Market requests. The company also has not provided a timeline for launching prediction market products.
Meanwhile, legal questions continue surrounding event contracts. More than a dozen state regulators have challenged sports-related prediction markets, while the CFTC maintains it has exclusive federal authority over event contracts.
The agency also requires designated contract markets to meet standards covering customer protection, market surveillance, financial resources, and safeguards against market manipulation before receiving approval.
