Binance.US plans to apply for a Designated Contract Market license from the CFTC in August 2026 to launch a prediction markets platform. CEO Stephen Gregory announced the move, which would place the exchange in a competitive field with Gemini, Coinbase, and Robinhood. The move comes amid legal disputes between the CFTC and state regulators over whether such event contracts constitute gambling.
Binance.US DCM license application
- ▪Binance.US plans to apply for a Designated Contract Market (DCM) license from the Commodity Futures Trading Commission (CFTC) in August 2026
- ▪As of July 29, 2026, no license application from Binance.US had been filed with the CFTC
- ▪Binance.US CEO Stephen Gregory announced the plan during an on-stage interview at the Rare Evo conference in Las Vegas
- ▪The DCM license would allow Binance.US to operate its own prediction markets platform for US customers
CFTC regulatory requirements
- ▪A Designated Contract Market (DCM) license is the CFTC's primary authorization for exchanges to list futures, options, and event-based contracts
- ▪The CFTC has proposed its first formal rule for the vetting of event contracts
- ▪Applicants for a DCM license must adhere to 23 core principles covering market surveillance, customer protection, and financial resources
Prediction markets competition
- ▪Competitors in the prediction markets space include Gemini, Coinbase, Robinhood, Kalshi, and Polymarket
- ▪Kalshi and Polymarket's US division are the volume leaders in the prediction markets category
- ▪Event contracts are one of the fastest-growing products in US retail trading
- ▪Gemini secured a CFTC license for prediction markets in 2026, while Coinbase partnered with Kalshi and Robinhood built its own licensed exchange
Legal jurisdiction disputes
- ▪The CFTC asserts exclusive federal jurisdiction over event contracts traded on its registered exchanges
- ▪The legal status of prediction markets is contested, with over a dozen state regulators arguing they are gambling products subject to state licensing
- ▪The CFTC has sued nine states, including Arizona, New York, and Illinois, over the jurisdictional dispute
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