Binance.US Bets the Farm on CFTC, Aiming to Out-Kalshi the Kalshis 🧠

Binance.US will apply for a Designated Contract Market (DCM) license from the Commodity Futures Trading Commission (CFTC) as soon as August, CEO Steve Gregory said Wednesday at the Rare Evo blockchain conference. The license would let the cryptocurrency exchange operate its own prediction markets platform, putting it in direct competition with regulated event-contract venue Kalshi and crypto-native prediction market Polymarket.

Under CFTC guidelines, Designated Contract Markets can legally trade "futures or option contracts based on any underlying commodity, index or instrument." Companies pursuing a DCM license must comply with 23 core principles from the agency, including system safeguards, record-keeping requirements, and policies addressing conflicts of interest. As of Wednesday, the CFTC had no records showing a pending application from Binance.US.

Gregory framed the move as part of Binance.US's effort to diversify beyond spot crypto trading and rebuild its competitive position in the United States. The push comes as prediction markets have drawn increased trading volume and mainstream attention, even as US regulators continue to scrutinize the sector.

The reported application lands more than a year after the US Securities and Exchange Commission dismissed its lawsuit against Binance, its US entity, and former Binance CEO Changpeng Zhao. That case had included allegations of misusing customer funds. Binance.US has separately continued to navigate compliance and operational changes in the US market since then.

The exchange has not announced which specific event categories its potential prediction market would cover or a launch timeline contingent on CFTC approval.