Binance.US plans to apply for Designated Contract Market (DCM) status with the US Commodity Futures Trading Commission (CFTC), a move that would allow the exchange to launch regulated prediction markets for US customers and compete directly with platforms such as Kalshi and Polymarket. Chief Executive Steve Gregory announced the plan during the Rare Evo conference in Las Vegas, saying the exchange intends to submit its application in August. If approved, Binance.US would be able to list and operate CFTC-regulated event contracts covering a wide range of outcomes, including elections, economic indicators, sports and other real-world events.
The planned expansion forms part of Binance.US’s broader strategy to rebuild its business after several years of regulatory challenges and declining market share. Gregory said the company is also focusing on lower trading fees, perpetual futures and additional financial products designed to diversify revenue beyond traditional spot cryptocurrency trading. A DCM designation would place Binance.US under the CFTC’s regulatory framework for futures and event contracts, allowing it to compete in one of the fastest-growing segments of US financial markets.
Prediction Markets Gain Institutional Momentum
Prediction markets have rapidly evolved from a niche product into one of the cryptocurrency industry’s most competitive business lines. Platforms allowing users to trade contracts based on future events have gained popularity across politics, macroeconomics and sports, attracting both retail traders and institutional participants. Industry estimates suggest trading volume across regulated US prediction markets exceeded $25 billion during 2025, encouraging exchanges to expand beyond conventional crypto products.
Several major firms have already entered the sector. Kalshi remains the leading CFTC-regulated prediction market operator, while Coinbase recently introduced prediction market products through a partnership with Kalshi. Gemini has also expanded its derivatives capabilities after obtaining a CFTC derivatives clearing organization licence earlier this year, positioning itself to compete more directly in event-based markets. Unlike offshore prediction platforms, a DCM licence would allow Binance.US to offer contracts within an established US regulatory framework, subject to CFTC oversight, market surveillance and compliance requirements. The approval process, however, can be lengthy, and there is no guarantee the application will be accepted.
Strategic Expansion Beyond Crypto Trading
The move reflects a broader convergence between cryptocurrency exchanges and traditional financial marketplaces. As spot trading volumes become increasingly cyclical, exchanges are looking toward derivatives, tokenized assets and event contracts to generate more stable revenue streams. Prediction markets have proven particularly attractive because they engage users beyond cryptocurrency price speculation while leveraging the same trading infrastructure. For Binance.US, expanding into regulated event contracts could also help reposition the exchange following years of legal and regulatory uncertainty. The company has been rebuilding its US operations under new leadership while introducing products aimed at competing more effectively with domestic rivals.
If the CFTC ultimately grants DCM status, Binance.US would join a small but growing group of regulated operators seeking to bring prediction markets further into the financial mainstream. The application also underscores the industry’s growing confidence that prediction markets are becoming a permanent component of regulated financial services rather than a niche crypto product. As exchanges race to diversify beyond digital-asset trading, event contracts are increasingly emerging as one of the sector’s most strategically important growth opportunities.
