Binance.US intends to file an application for a designated contract market (DCM) license with the Commodity Futures Trading Commission (CFTC) next month, as the exchange positions itself to enter the rapidly growing prediction market space.

Chief Executive Stephen Gregory revealed the plan Wednesday at 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 CFTC supervision and potentially offer event contracts to retail customers. A DCM is a federally regulated exchange authorized to list futures, options, and other derivative products. To qualify, applicants must meet CFTC standards spanning market surveillance, customer protection, financial resources, and anti-manipulation safeguards.

As of now, Binance.US does not appear on the CFTC's public roster of pending DCM applications, which aligns with Gregory's indication that the filing is slated for next month. The company has not announced a timeline for launching any specific products, and regulatory approval is not assured.

The planned filing marks a key step in a broader turnaround effort built around reduced trading fees and a push beyond spot cryptocurrency trading. Gregory had previously indicated the exchange was evaluating retail derivatives and event-based offerings as part of its strategy to recover market share eroded by years of regulatory uncertainty.

According to CoinDesk Indices data, Binance.US held approximately 20% of the US crypto exchange market at its 2022 peak. That share has since declined to near zero.

Binance.US operates independently from the global Binance exchange, though the two entities share branding and beneficial ownership. The US platform suffered significant trading volume losses following enforcement actions targeting the wider Binance organization. In 2023, the global exchange agreed to a $4.3 billion settlement with US authorities over sanctions and money transmission violations. That same year, Binance.US's then-CEO Brian Shroder departed as part of a broader leadership restructuring and significant workforce reduction. Gregory later assumed the chief executive role as the company worked to rebuild its US operations under heightened regulatory scrutiny.

The prediction market sector has grown quickly, with both financial and cryptocurrency firms racing to provide event contracts linked to sports, elections, economic indicators, and other real-world outcomes. Kalshi, a CFTC-regulated DCM, has been offering retail event contracts since its approval in 2022, while crypto-native platform Polymarket settled with the CFTC that same year over unregistered derivatives activity and restricted access for US users. The industry nonetheless faces ongoing legal and regulatory friction. State regulators, consumer advocacy organizations, and conventional gaming operators have disputed whether certain event contracts qualify as federally regulated derivatives or should instead be classified as gambling products under state jurisdiction.

The CFTC has further reminded designated markets that event contracts must adhere to existing requirements governing product submissions, market integrity, and anti-manipulation measures.