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Binance.US they want to use obtaining approval from the Commodity Futures Trading Commission in August, seeking designation as a Designated Contract Market, a federally regulated exchange that lists futures, options and futures contracts.
TL; DR
- Binance.US intends to apply in August for the CFTC’s authorization to operate a prediction market exchange.
- The Select Contract Market License covers trading only; Cleaning requires a separate registration or partner.
- The CFTC’s guidelines issued on July 24 prohibit template format files that cover multiple markets at the same time.
- Crypto.com bought its way through Nadex; Coinbase distributes Kalshi contracts.
CEO Stephen Gregory revealed his timing at the Rare Evo conference in Las Vegas. No work has appeared in the CFTC’s public DCM file database from July 30, according to the said schedule.
Exchanges that spent years fighting US regulators are now asking for a license as an exit point. Prediction markets allow traders to buy contracts that pay off if a certain event occurs, and the group has attracted every major US crypto platform within a year.
License Covers Half of What Binance.US Needs
The DCM system approves the location where contracts are listed and sold. Clearing is done through another organization: trades carried out on DCM are usually seen through a registered Derivatives Clearing Organization, which controls the collateral, defaults and conditions established when traders take different sides of the contract.
This leaves three options open. Binance.US can register its own DCO, partner with a museum, or buy infrastructure that has both licenses. Each carries different fees, time and regulatory parameters, and the company hasn’t said which one it will prefer.
The decision determines what Binance.US is actually building. Registering your own building permit means creating a full portfolio, with financial requirements and risk management responsibilities included. Collaborative refers to the rapid initiation and adoption of the willingness of another organization to withdraw crypto-related contracts.
The CFTC Raised the Bar Six Days Ago
On July 24, Mr The CFTC warned against regulated exchanges against filing template-style contracts which gathers many possible markets under one anonymous certificate.
The directive leaves only the DCM program unaffected. It governs what the official exchange can do next, which requires that each market or a closely related group of markets come up with their source, settlement method, risks of disruption and analysis of market performance.
For the established crypto space that means a slow start. Bitcoin price levels, token launches, ETF decisions and protocol upgrades are always needed and approved by regulators. Copying an already running menu from Kalshi or Polymarket and verifying it more and more is what the instructions say.
Everyone else bought or rented their own driveway
Crypto.com acquired Nadex in 2022, based on its legacy of DCM and DCO subscriptions. This gave the site and space to clean up before launching anything for the consumer. When Crypto.com launched its OG vertical prediction platform, contracts go through a state-run exchange instead of a local exchange.
Coinbase took a lighter approach. Predictive markets appear inside Coinbase Financial Markets when Kalshi makes contracts and decides the results, so Coinbase offers distribution and crypto-native features without having the responsibility of controlling the bottom line.
Binance.US is trying a brand that no one has chosen. Building the facility means controlling the structure of contracts, payment rates and existing markets, rather than writing whatever the partners want to create. For a platform whose difference can be the contracts of crypto-native activities, that control has a clear interest, and it also means absorbing the monitoring systems, security of money and stability of the machines that the competitors found ready.
Why Binance.US Needs a Second
The work comes during the rebuilding phase. Stephen Gregory became CEO in Marchand the platform has posted updates on the default mode since:
The one who organizes the sale of the property. The agreement of events can increase the group that creates work where the crypto market does not have: meetings of interest, regulatory rules and deadlines of the protocol all generate the volume of the market, which is the time when the exchange of the suppressed area makes little profit.
The smart way is clear. The question to be executed is whether the company that is rebuilding the primary accounts can immediately stand up to the land created by the government.
What August Will Show
The writing answers the questions that the announcement left open: which organization manages the site, how the contracts are clear, customer protection works, and whether the desire will stop at the prediction markets or continue with more business.
Its preparation is very important. The DCO service along with the DCM token for recording Binance.US is making everything and accepting it for a long time. A well-known partner indicates that it wants to start quickly and has found an organization that wants to invest in its partners. The silence on the cleaning may indicate that the system is not as well designed as the August date suggests.
