Binance.US is set to request a designated contract market license from the Commodity Futures Trading Commission as early as August, opening the door to operate its own prediction market. CEO Stephen Gregory revealed this move during a live interview at the Rare Evo conference in Las Vegas on Wednesday.
The DCM license grants federally regulated exchanges the authority to list futures, options, and event-based contracts under strict regulatory standards. Adhering to 23 core principles, applicants must demonstrate solid measures for market oversight, customer safeguards, recordkeeping, financial soundness, and efforts to prevent market manipulation.
Event contracts have surged in popularity among US retail traders, driving Binance.US to enter the high-stakes competition. The space is crowded with established players like Gemini, which secured a similar CFTC license earlier this year, Coinbase collaborating with Kalshi, and Robinhood operating Rothera through a partnership with Susquehanna International Group. Kalshi and Polymarket’s US division still dominate trading volumes.
Legal debates persist over the classification of these event contracts. Several state regulators contend that sports-linked contracts fall under gambling laws requiring state licenses, while the CFTC asserts its exclusive federal jurisdiction over contracts traded on registered platforms. This tension has led the agency to challenge at least nine states, including Arizona, New York, and Illinois, and it recently introduced its first-ever formal rule outlining the evaluation of event contracts.
Robinhood’s expansion into this niche highlights the intense regulatory and market dynamics at play, as Binance.US prepares to make its mark.
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