Binance.US Plans to Seek CFTC Approval for Prediction Markets as Early as August

Binance.US is preparing to apply for a Designated Contract Market license with the US Commodity Futures Trading Commission, a move that would let it offer event contracts in the United States. For high-risk payments teams, the interesting part is not the branding exercise — it’s that another major crypto venue is trying to get into a regulated derivatives-style product line that sits close to payments, onboarding, and compliance controls.

1. According to comments made by chief executive officer Stephen Gregory at the Rare Evo Blockchain AI Conference in Las Vegas, Binance.US plans to seek regulatory approval to offer prediction market products in the country. The filing for a Designated Contract Market license could be submitted as early as August.
2. If approved, the license would allow Binance.US to legally offer event contracts, a type of derivative that lets users speculate on outcomes tied to real-world events, including elections, economic indicators, sports, and entertainment.
3. The timing matters because prediction markets are gaining traction in the US. Robinhood has described event contracts as one of its fastest-growing businesses, while Coinbase said prediction market activity rose significantly in the second quarter of the year.
4. For Binance.US, this would also be a reset of sorts after a rough run. Before regulatory scrutiny intensified, it was one of the largest cryptocurrency exchanges in the country, but its market share fell sharply after legal issues involving its global parent company.
5. In November 2023, Binance pleaded guilty to violating US anti-money laundering laws and agreed to pay a $4.3 billion settlement. Binance.US operates separately, but the fallout still hurt the brand in the American market and gave competitors room to grow.

Binance says its broader ecosystem serves over 300 million users worldwide and controls a substantial share of global crypto trading volume. The company also already has some exposure to event contracts through its partnership with Predict.fun, which offers them on the BNB Smart Chain outside the US. The catch, of course, is that Binance.US is still unavailable in several states, including New York and Texas, and customers in other states face restrictions on dollar transactions.