Binance.US to attempt prediction markets entry as CFTC-licensed entity, says CEOThe CEO of the US crypto exchange said that the company would apply for a license with the CFTC in August allowing it to offer prediction markets.
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Binance.US plans to enter the prediction markets sector by applying for a Designated Contract Market (DCM) license from the US Commodity Futures Trading Commission (CFTC). CEO Steve Gregory announced at the Rare Evo blockchain conference that the company intends to submit its DCM application in August. Obtaining this license would authorize Binance.US to offer prediction market services, potentially positioning it as a competitor to existing platforms like Kalshi and Polymarket.
Under CFTC regulations, a DCM can legally facilitate trading of futures or options contracts based on commodities, indexes, or other instruments. To obtain the license, Binance.US would need to adhere to 23 core principles set by the CFTC, which include implementing system safeguards, maintaining comprehensive records, and managing conflicts of interest. As of the report date, the CFTC had no public record of a pending application from Binance.US.
This development emerges over a year after the SEC dropped its lawsuit against Binance, Binance.US, and former CEO Changpeng Zhao, which had included allegations such as misuse of customer funds. Cointelegraph contacted Binance.US for comment regarding the DCM application but did not receive an immediate response. The source underscores its commitment to independent journalism and advises readers to verify the information independently.