Binance.US CEO Steve Gregory announced plans to apply for a Designated Contract Market (DCM) license with the Commodity Futures Trading Commission (CFTC) in August 2026. Delivered on stage at the Rare Evo conference, the announcement clearly signals the company’s intention to enter the legally recognized prediction market business.
A DCM license from the US commodities regulator serves a specific purpose. License holders are permitted to offer legal prediction markets, placing Binance.US in direct competition with established entities like Kalshi and Polymarket. However, the verbal remarks have yet to materialize into official documents. As of Wednesday, the CFTC has no record of a pending DCM application from Binance.US.
Stringent Regulatory Requirements
Entering CFTC-regulated prediction markets means adhering to comprehensive rules. Under these regulations, a platform with DCM status is authorized to trade futures and options contracts. Offered contracts can be based on physical commodities, market indices, or other agreed-upon instruments.
That authority comes bundled with the obligation to comply with the CFTC’s 23 core principles. These mandatory requirements obligate the firm to build robust system safeguards, maintain orderly record-keeping standards, and enforce strict conflict of interest policies.
Past Legal Burdens and New Feuds
The licensing plan comes at a crucial juncture. Binance.US’s move arrives more than a year after the Securities and Exchange Commission (SEC) resolved its lawsuit against Binance’s US entity, Binance’s global entity, and former CEO Changpeng Zhao. That settled case centered on allegations of customer fund mishandling, which weighed on the company’s reputation.
With the SEC matter resolved, the path toward a DCM license is now confronted by jurisdictional tensions. Binance.US’s efforts coincide with an open legal battle between the CFTC and state-level governments. At the core of the dispute is state authorities’ push to apply gambling laws to the prediction platform ecosystem.
Awaiting Proof of Filing
While the intent to challenge Kalshi and Polymarket’s dominance has gone public, concrete steps have yet to be recorded. Until a DCM application is officially submitted and logged with the CFTC, the rivalry remains limited to a verbal declaration from a conference stage.
Reported by Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
