Binance.US has submitted an application to the Commodity Futures Trading Commission to offer prediction-market services in the United States. Chief Executive Stephen Gregory first laid out the plan in late July at the Rare Evo conference in Las Vegas, saying the company intended to apply for a Designated Contract Market (DCM) license the next month.
A DCM designation would allow Binance.US to list futures, options, and event-based contracts for retail traders under federal rules. Other crypto firms have been making similar moves through partnerships or their own filings.
Meanwhile, monthly volume on Kalshi and Polymarket climbed from $17 billion in January to $72 billion in September, more than a 400% jump. Spot cryptocurrency trading volume dropped 18% over the same stretch. The shift has pushed exchanges to find other ways to keep traders active and generate revenue as ordinary token trading has slowed.
Crypto Firms Expand Beyond Spot Trading Into Event Contracts
Blockchain.com applied to the CFTC last week for the right to offer regulated event contracts. The British company is seeking both a Designated Contract Market license and Futures Commission Merchant status. That combination would let it run an exchange and also broker derivatives. Chief Executive Peter Smith told the paper that customers want to handle digital assets, trade derivatives, and take positions on real-world events without jumping between different apps.
Coinbase began offering event contracts earlier this year through a partnership with Kalshi. Gemini received a CFTC license earlier in 2026. Bullish has also filed its own application. Platforms that started with crypto trading are adding contracts tied to elections, economic data, sports, and other measurable outcomes as additional trading opportunities for their user base.
Binance.US is looking to raise up to $100 million at a valuation near $1 billion. The money would help it expand and restore state money-transmitter licenses. Gregory has also discussed lowering trading fees and adding perpetual products later. The funding and product plans fit into the exchange’s attempt to rebuild its US business after earlier regulatory problems cut its market share.
Volume Growth and the Regulatory Path Ahead
Monthly volume on Kalshi and Polymarket rose from $17 billion to $72 billion over roughly eight months, showing how fast interest has grown. Traders are using the contracts to take positions on everything from Federal Reserve decisions to election results. The increase came as overall crypto spot activity cooled, giving exchanges a practical reason to add the products once they clear regulatory hurdles.
CFTC approval is not guaranteed. Companies seeking DCM status have to meet the CFTC’s 23 core principles. Those cover system safeguards, record-keeping, financial resources, market surveillance, and controls on conflicts of interest. Reviews can run for months. As of late October 2026, the agency has not posted a public docket entry or any decision timeline for the Binance.US application.
Earlier reports noted that Binance.US did not appear on the CFTC’s public list of pending applications in the weeks after Gregory spoke in July. An October 21 Financial Times story indicates the application has now been filed. The company and the regulator have not released details on specific contracts, who can trade them, or when any products might launch.
Furthermore, the CFTC is still adjusting how it handles event contracts. The agency has clarified that certain contracts fall under its exclusive federal authority as swaps. That choice shapes how platforms design their products and how state regulators can respond. A DCM license would give a platform one national set of rules instead of dealing with differing state approaches.
What the Application Means for Traders and Competitors
If the CFTC approves the designation, Binance.US traders could trade event contracts on the same platform and app where they already buy and sell crypto. The exchange would then compete more directly with Kalshi, which currently leads volume among CFTC-regulated venues, and with Polymarket’s US offering. Gregory has repeatedly mentioned shared liquidity and lower fees as part of the broader plan. It’s very hard for a new market entrant to lure customer use without reasonable liquidity, making crossover product launches from large user trading bases ideal.
Firms that already hold licenses or partnerships will feel more pressure if a sizable crypto platform gets in. At the same time, filings from Binance.US and Blockchain.com show that several crypto-native companies view regulated event contracts as a lasting revenue source rather than a short-term idea. Smith’s remark about keeping everything in one app lines up with how many traders prefer to work.
However, the applications are only requests. Neither company has launched prediction-market products for US customers, and neither has given a launch date. The next clear signals will likely be a public note from the CFTC or more detail from the companies on what the products would look like.
References
- Binance US, Blockchain.com Enter Race to Offer Prediction Markets
- Binance.US Seeks US Prediction Market Entry, Files Application With CFTC
- Binance.US to Apply for CFTC License in August for Prediction Market Platform
- Binance.US Wants to Join Prediction Markets Race With CFTC Stamp
- Eleanor Terrett Scoop on Binance.US DCM Plans
- Blockchain.com, Binance US Join Prediction Market Race as Crypto Trading Slows
- Sports Is Driving the Majority of Prediction Markets Growth, Says Piper Sandler’s Moley
