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Binance.US plans to apply for a designated contract market license from the Commodity Futures Trading Commission next month as the exchange prepares to expand into prediction markets.
Chief executive Stephen Gregory disclosed the plan Wednesday during the Rare Evo conference in Las Vegas, according to Bloomberg, citing a Binance.US spokesperson.
Receiving designated contract market status would allow Binance.US to operate a derivatives exchange under CFTC oversight and potentially list event contracts for retail customers.
A designated contract market is a federally regulated exchange that can offer futures, options, and other derivative contracts. Applicants must satisfy CFTC requirements covering market surveillance, customer protection, financial resources, and safeguards against manipulation.
Binance.US has not yet appeared on the CFTC’s public list of pending designated contract market applications, consistent with Gregory’s statement that the filing is planned for next month. Approval is not guaranteed and the company has not disclosed a timeline for launching any products.
The planned application advances a broader comeback strategy centered on lower trading fees and an expansion beyond spot crypto trading.
Gregory previously said the exchange was exploring retail derivatives and event based products as it attempts to regain market share lost during several years of regulatory uncertainty.
At its peak in 2022, Binance.US controlled roughly 20% of the US crypto exchange market, according to CoinDesk Indices data. Its share has since fallen to nearly zero.
Binance.US operates separately from the larger global Binance exchange, although the businesses share branding and beneficial ownership.
The US company lost substantial trading activity following regulatory actions involving the broader Binance organization. The global exchange reached a $4.3 billion settlement with US authorities in 2023 over violations related to sanctions and money transmission rules.
The prediction market sector has expanded rapidly as financial and crypto companies compete to offer event contracts tied to sports, elections, economic data, and other outcomes.
However, the industry remains subject to legal and regulatory disputes. State authorities, consumer groups, and traditional gaming operators have challenged whether certain event contracts should be treated as federally regulated derivatives or gambling products governed by state law.
The CFTC has also reminded designated markets that event contracts must comply with existing product submission, market integrity, and anti manipulation requirements.
Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.
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