Binance.US Aims for CFTC License in Prediction Market Push

Binance.US plans to expand into prediction markets by applying for a designated contract market license from the Commodity Futures Trading Commission next month. According to Chief Executive Stephen Gregory, this move is part of a broader comeback strategy centered on lower trading fees and an expansion beyond spot crypto trading.

The exchange currently operates separately from the larger global Binance exchange but shares branding and beneficial ownership. Binance.US previously controlled roughly 20% of the US crypto exchange market at its peak in 2022, but its share has since fallen to nearly zero due to regulatory uncertainty.

The prediction market sector has expanded rapidly as financial and crypto companies compete to offer event contracts tied to sports, elections, economic data, and other outcomes. However, the industry remains subject to legal and regulatory disputes over whether certain event contracts should be treated as federally regulated derivatives or gambling products governed by state law.