Binance.US Targets Prediction Markets as Crypto Exchanges Race Into Event Contracts

Binance.US is preparing to apply for a Commodity Futures Trading Commission (CFTC) license that would allow the exchange to offer prediction markets to U.S. customers, marking another step in its expansion beyond traditional spot crypto trading.

CEO Stephen Gregory said the exchange plans to submit an application for a Designated Contract Market (DCM) license next month during an appearance at the Rare Evo conference in Las Vegas, according to journalist Eleanor Terrett.

The exchange has not yet filed with the regulator, meaning approval remains uncertain. However, securing the license would allow Binance.US to enter a rapidly growing market where platforms are competing to offer regulated event contracts covering areas such as sports, politics, and economic outcomes.

Why a CFTC Designated Contract Market License Matters

A Designated Contract Market (DCM) license is one of the CFTC’s primary regulatory approvals for platforms offering futures, options, and certain types of event contracts in the United States.

Licensed venues must comply with the Commodity Exchange Act and meet 23 core principles covering areas including market surveillance, financial resources, risk management, and trading system safeguards.

The approval process can take several months as the regulator evaluates whether an applicant has sufficient controls to operate a regulated derivatives marketplace.

For Binance.US, the application represents a broader effort to rebuild and expand its U.S. product offering following years of regulatory pressure.

The move comes after regulators dropped their lawsuit against Binance.US in 2025, allowing the exchange to resume efforts to broaden its services.

Prediction Markets Become the Next Exchange Battleground

Binance.US is entering an increasingly competitive market.

Trading activity across CFTC-designated venues exceeded $25 billion in 2025, while the number of event contracts offered by exchanges grew from 131 in 2021 to roughly 1,600 in 2025.

Platforms such asKalshi and Polymarkethave become major players in the prediction market sector, building liquidity around contracts tied to elections, sports, and other real-world events.

The challenge for Binance.US will be attracting users in a market where existing platforms already hold significant liquidity advantages.

The exchange appears to be positioning prediction markets as part of a broader trading expansion that includes planned perpetual futures products and lower trading fees.

From Spot Trading to Full-Spectrum Markets

The move reflects a wider shift among crypto exchanges seeking new revenue streams beyond spot trading.

As trading fees on traditional crypto markets face increasing competition, exchanges are expanding into products that combine elements of derivatives, forecasting, and traditional financial markets.

Prediction markets have gained attention because they allow users to trade contracts tied to future outcomes, creating a market-based approach to forecasting events.

For crypto platforms, the sector represents another opportunity to connect blockchain-native users with regulated financial products.

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Regulatory Uncertainty Remains the Main Challenge

While Binance.US is preparing its application, the regulatory landscape for prediction markets remains unsettled.

The CFTC proposed a new framework for event contracts on June 10, with the public comment period closing on July 27.

At the same time, state regulators have challenged certain prediction market activities, particularly contracts linked to sports and political events, creating additional legal uncertainty for platforms operating in the sector.

A successful application would give Binance.US access to a product category already gaining traction among U.S. competitors.

However, the first test comes next month, when the exchange is expected to submit its DCM application and begin the process of becoming a regulated prediction market operator.