Binance.US intends to apply for a Designated Contract Market (DCM) license with the US Commodity Futures Trading Commission (CFTC), positioning the cryptocurrency exchange to offer prediction markets services to its users.

Speaking at the Rare Evo blockchain conference on Wednesday, Binance.US CEO Steve Gregory said the CFTC license would enable the exchange to launch its own prediction market platform, potentially challenging established competitors such as Kalshi and Polymarket. Gregory indicated that the company plans to submit its DCM application sometime in August. The move comes amid growing mainstream interest in prediction markets, which allow users to trade on the outcomes of real-world events, from elections to economic indicators.

Under CFTC guidelines, DCMs are permitted to legally trade "futures or option contracts based on any underlying commodity, index or instrument." To obtain a DCM license, companies must comply with 23 core principles set forth by the agency, which include maintaining system safeguards, conducting proper record keeping, and addressing conflicts of interest.

As of Wednesday, the CFTC had no records indicating that Binance.US has a pending DCM application on file.

The planned application follows more than a year after the US Securities and Exchange Commission (SEC) dismissed its lawsuit against Binance, its US entity, and former Binance CEO Changpeng Zhao. The lawsuit had included allegations of misusing customer funds. The dismissal marked a notable shift in the regulatory environment for Binance.US, which has been working to rebuild its standing with US regulators and expand its domestic product offerings.