Binance.US to attempt prediction markets entry as CFTC-licensed entity, says CEO

According to its leadership, cryptocurrency exchange Binance.US will apply for a Designated Contract Market (DCM) with the US Commodity Futures Trading Commission (CFTC) to offer prediction markets services to users.

At the Rare Evo blockchain conference on Wednesday, Binance.US CEO Steve Gregory said that the CFTC license would allow the exchange to launch its own prediction market in what could become a challenge to platforms like Kalshi and Polymarket. The CEO said that the company will apply for the DCM sometime in August.

Under CFTC guidelines, DCMs can legally trade “futures or option contracts based on any underlying commodity, index or instrument.” Companies seeking to be licensed as a DCM must comply with 23 core principles from the agency, including having system safeguards, conducting record keeping and addressing conflicts of interest.

As of Wednesday, the CFTC had no records showing that Binance.US has a pending application for a DCM. Cointelegraph reached out to a Binance.US spokesperson for comment but did not receive an immediate response.

The reported application would come more than a year after the US Securities and Exchange Commission (SEC) dismissed its lawsuit against Binance, its US entity and former Binance CEO Changpeng Zhao over allegations that included misusing customer funds.