According to Journalist Eleanor Terrett, citing comments from Binance.US Chief Executive Officer Stephen Gregory at the Rare Evo conference in Las Vegas, the exchange plans to apply for a Commodity Futures Trading Commission-designated contract market (DCM) license in August. The application represents a significant step forward in *Binance.US'*s strategy to expand beyond spot cryptocurrency trading into regulated derivatives and event contracts. The move advances Gregory's earlier strategy outlined this month, when he said the exchange intended to pursue licenses for derivatives, perpetual futures and prediction markets as part of its expansion plans. Terrett reports that this push is part of Binance.US's broader comeback strategy, which centers on lower trading fees and expanding beyond spot trading with products such as prediction markets and perpetuals.
If approved, the CFTC license would place Binance.US alongside a small but expanding group of federally regulated prediction market operators. Kalshi and Polymarket US already operate in the segment, while Gemini secured its own CFTC license earlier this year. Coinbase has also entered the market through a partnership with Kalshi that offers event contracts to U.S. users. The competition extends beyond crypto-native exchanges, with the Wall Street Journal reporting that Robinhood has discussed adding prediction market contracts from Crypto.com to its brokerage platform. Robinhood's latest quarterly earnings illustrate the trend's growth potential, with the company reporting $156 million in revenue from event contracts during the second quarter, more than 10 times the level recorded a year earlier. According to AMBCrypto, Robinhood's event contracts segment now accounts for 20% of its total transaction revenue in Q2, with the company recording $13.9 billion in event contracts volume during the quarter.
The Commodity Futures Trading Commission (CFTC) faces significant opposition from state regulators as attorneys general from 44 U.S. states sent a joint letter opposing the agency's authority to regulate sports-related prediction markets. According to Odaily, the letter argues that the CFTC's first proposed rule on prediction market regulation exceeds its statutory authority, conflicts with the Constitution, and is arbitrary and capricious. The attorneys general specifically demand that the rule be rewritten to clarify that sports betting cannot be traded on designated contract markets and should instead be governed by state law. Notably, attorneys general from Florida, Georgia, New Hampshire, Missouri, and Texas did not sign the letter, indicating some states may support the CFTC's regulatory approach. However, the legal landscape remains complex, with a federal judge in Wisconsin rejecting the CFTC's request to stop state enforcement against platforms including Kalshi, Polymarket, Crypto.com, Robinhood and Coinbase.
The prediction markets sector has experienced unprecedented growth, with decentralized prediction market volume hitting a record $46 billion in June at the peak of the World Cup. According to AMBCrypto, so far in July, the volume has hit a record high close to $50 billion with an average of about $4 million in weekly revenue or nearly $200 million in annual revenue. This growth is particularly significant given that prediction markets now generate more money than conventional segments (equities or crypto) for some platforms. The revenue potential is substantial, with Robinhood's event contracts segment outpacing its combined equities and crypto markets in Q2. The sector's evolution is part of a broader trend where both U.S. and offshore crypto platforms are evolving into super apps covering everything from trading to investment, with Binance's global arm having introduced prediction markets in April 2026.
For Binance.US, securing a DCM license could significantly expand its product lineup while reinforcing its regulatory credentials in the United States. Gregory previously said the company wanted to regain the roughly 20% share of the U.S. crypto exchange market it once held before regulatory challenges reduced its business. Alongside lower trading fees and renewed liquidity efforts, he identified prediction markets and derivatives as products that could create additional revenue streams, subject to regulatory approvals. The exchange has already restored U.S. dollar banking services in most supported states and is working to attract customers back through improved trading costs and stronger liquidity. However, the company has not yet submitted its application, and any approval process could take months, with CFTC review timelines varying and no guarantee of approval. The ongoing legal battle between the CFTC and states over who should oversee this sector could derail prediction markets' full adoption, as betting platforms and states are banning prediction market platforms for flouting local gambling laws.
