Binance.US, the American affiliate of Binance, will begin the formal application process for its own prediction market platform next month. The company aims to secure a designated contract market (DCM) license from the Commodity Futures Trading Commission (CFTC).
What does the license allow?
Binance.US CEO Stephen Gregory announced at the Rare Evo conference in Las Vegas that the company plans to submit its DCM application in August. A company spokesperson later confirmed the plan to The Block, showing that the move is official rather than market speculation.
DCM status applies to exchanges that can legally list futures and derivative contracts in the United States. Platforms holding this license operate under federal oversight and can offer futures, options and event-based contracts to retail investors.
In practice, this allows users to trade “yes or no” contracts tied to subjects ranging from election results to central bank decisions. If Binance.US receives approval, it will compete directly with Kalshi and Polymarket US, which already operate under the same regulatory framework. The company would therefore enter a market with more than one established rival.
Binance.US joins a crowded race
Binance.US is far from the only company seeking a position in this market. Gemini has already secured a CFTC license this year. Coinbase chose a different route, partnering with Kalshi instead of pursuing a license independently.
Robinhood appears to be considering a similar strategy. According to a Wall Street Journal report published last week, the trading platform is in talks to bring Crypto.com’s prediction market contracts into its own application.
Crypto exchanges and traditional financial platforms are moving one after another to secure a share of the emerging market. Binance.US’s entry would add one of the industry’s largest names to an increasingly competitive race.
The legal dispute remains unresolved
The prediction market sector continues to expand, but the legal framework surrounding it has yet to develop at the same pace. Regulators in more than a dozen U.S. states have challenged platforms offering sports-related contracts.
The CFTC takes the opposite position. The federal regulator argues that it has exclusive jurisdiction over event contracts.
State authorities view these products through the lens of gambling regulations. The CFTC, meanwhile, claims that federal law overrides attempts by individual states to intervene. Prediction market platforms now find themselves caught between two authorities asserting competing powers over the same products.
Neither side appears willing to back down. The dispute will likely require a court ruling or new legislation before the legal boundaries become clear.
If Binance.US receives approval, four major platforms — Kalshi, Polymarket US, Gemini and Binance.US — could compete directly in the U.S. prediction market sector. That number may rise to five if a partnership between Robinhood and Crypto.com becomes official.
The expanding field highlights how seriously crypto exchanges are moving into areas traditionally dominated by Wall Street. Prediction markets could become the next major battleground between cryptocurrency platforms and established financial companies.
