Binance.US Seeks CFTC License for Prediction Market Expansion

Binance.US plans to apply for a designated contract market license from the Commodity Futures Trading Commission (CFTC) next month as it expands into prediction markets. The move is part of the exchange's broader comeback strategy centered on lower trading fees and an expansion beyond spot crypto trading.

Receiving designated contract market status would allow Binance.US to operate a derivatives exchange under CFTC oversight and potentially list event contracts for retail customers. A designated contract market is a federally regulated exchange that can offer futures, options, and other derivative contracts, subject to requirements covering market surveillance, customer protection, financial resources, and safeguards against manipulation.

Binance.US has not yet appeared on the CFTC's public list of pending designated contract market applications. Approval is not guaranteed and the company has not disclosed a timeline for launching any products. The planned application advances Binance.US's efforts to regain market share lost during several years of regulatory uncertainty, particularly following a $4.3 billion settlement with US authorities in 2023 over violations related to sanctions and money transmission rules.