Binance.US plans CFTC application in prediction market expansion

The global Binance exchange reached a $4.3 billion settlement with US authorities in 2023 for sanctions and money transmission violations. Binance.US operates separately but shares branding and beneficial ownership.

Gregory has previously said the exchange was exploring retail derivatives and event-based products as part of its effort to win back customers.

The prediction market sector has grown quickly. Financial and crypto firms are racing to offer event contracts. The industry faces legal challenges over whether such contracts are regulated derivatives or gambling products governed by state law.

State authorities and consumer groups have argued that some event contracts violate state gambling rules. The CFTC has reminded designated markets that event contracts must comply with product submission and market integrity rules.

The planned application is part of an effort to reenter the derivatives market under formal regulation after years of uncertainty linked to its parent company’s legal troubles, Gregory said. Binance.US has not appeared on the CFTC’s public list of pending DCM applications, consistent with the planned filing next month.