Binance.US intends to apply for a designated contract market (DCM) license from the Commodity Futures Trading Commission (CFTC) as early as next month, marking a significant step in the exchange's push into prediction markets and retail derivatives.

Chief Executive Officer Stephen Gregory disclosed the plan on Wednesday during the Rare Evo conference in Las Vegas, Bloomberg reported, citing a Binance.US spokesperson.

Securing DCM status would enable Binance.US to operate a derivatives exchange under federal CFTC oversight and potentially offer event contracts to retail customers. A designated contract market is a federally regulated exchange authorized to list futures, options, and other derivative products. To qualify, applicants must meet CFTC requirements spanning market surveillance, customer protection, financial resources, and anti-manipulation safeguards.

As of now, Binance.US has not appeared on the CFTC's public list of pending DCM applications, which aligns with Gregory's indication that the filing is slated for next month. Approval is not guaranteed, and the company has not disclosed a target date for launching any specific products.

The planned application forms part of a broader comeback strategy built around lower trading fees and diversification beyond spot cryptocurrency trading. Gregory had previously indicated that Binance.US was exploring retail derivatives and event-based products as it works to recover market share eroded by years of regulatory uncertainty.

At its 2022 peak, Binance.US held approximately 20% of the U.S. crypto exchange market, according to CoinDesk Indices data. That share has since declined to nearly zero.

Binance.US operates as a separate entity from the global Binance exchange, though the two businesses share branding and beneficial ownership. The U.S. platform suffered significant losses in trading activity following regulatory enforcement actions tied to the broader Binance organization. In 2023, the global exchange reached a $4.3 billion settlement with U.S. authorities over violations related to sanctions and money transmission rules.

The prediction market sector has grown rapidly, with financial and cryptocurrency firms competing to offer event contracts tied to sports, elections, economic data releases, and other real-world outcomes. Kalshi, a CFTC-regulated DCM, has operated event contracts in the United States since receiving approval in 2022, while Polymarket, a blockchain-based prediction platform, has attracted substantial volume but operated without a U.S. license. The industry, however, continues to face legal and regulatory friction. State authorities, consumer advocacy groups, and traditional gaming operators have contested whether certain event contracts should be classified as federally regulated derivatives or as gambling products subject to state law.

The CFTC has separately reminded designated markets that event contracts must adhere to existing rules covering product submission, market integrity, and anti-manipulation requirements. For Binance.US, obtaining a DCM license would require demonstrating compliance with those operational standards while navigating the reputational legacy of the 2023 enforcement settlement involving its affiliated global entity.