Binance.US intends to apply for a Commodity Futures Trading Commission (CFTC) Designated Contract Market (DCM) license in August, as the exchange looks to expand into regulated derivatives and prediction markets.

Chief Executive Officer Stephen Gregory announced the plan during the Rare Evo conference in Las Vegas. According to journalist Eleanor Terrett, the filing is part of a broader recovery strategy aimed at diversifying the platform beyond its core spot trading business through prediction markets, perpetual products, and reduced trading fees.

A Binance.US spokesperson confirmed the planned application. If approved, the DCM license would allow the exchange to operate a federally regulated derivatives venue, enabling it to offer futures, options, and event-based contracts to retail customers under CFTC oversight. The move reflects how derivatives have become a critical revenue driver for major crypto exchanges, as institutional and retail demand for leveraged and hedging instruments continues to outpace spot trading activity across the sector.

Product Diversification Drive

Gregory stated that the company intends to submit its application in August. Alongside prediction markets, Binance.US plans to introduce perpetual trading products as part of its push to diversify revenue streams and product offerings.

The exchange has been working to rebuild market share after several years of regulatory headwinds, including the 2023 SEC lawsuit alleging violations of federal securities laws and the broader settlement involving Binance Holdings and former CEO Changpeng Zhao with the Department of Justice. At its peak in 2022, Binance.US held approximately 20% of the U.S. crypto exchange market before experiencing a significant decline.

Competitive Landscape Tightens

The announcement comes amid growing interest from crypto firms in regulated event contracts, a category that has drawn heightened mainstream attention as platforms such as Polymarket saw surging volume around political and cultural events. Gemini secured a CFTC license earlier this year, and Coinbase partnered with Kalshi to offer prediction market products.

Bloomberg also reported that Robinhood is in discussions with Crypto.com regarding a partnership to add prediction market contracts to its platform.

Regulatory Hurdles Remain

Although Binance.US plans to file next month, the application has not yet appeared on the CFTC's public list of pending DCM requests, and the company has not disclosed a timeline for launching prediction market products. The DCM approval process typically involves a rigorous review period, meaning a launch under such a license could take considerable time even if the filing proceeds smoothly.

Legal uncertainty continues to surround event contracts more broadly. More than a dozen state regulators have challenged sports-related prediction markets, while the CFTC maintains that it holds exclusive federal authority over such contracts. The tension reflects a broader unresolved boundary between state and federal oversight of prediction market products.

The agency requires designated contract markets to meet standards covering customer protection, market surveillance, financial resources, and safeguards against market manipulation before granting approval.