Woofun AI reports that Binance.US is preparing to enter the prediction market sector by seeking a Designated Contract Market (DCM) license from the Commodity Futures Trading Commission (CFTC), a strategic pivot intended to challenge established platforms like Kalshi and Polymarket.

At the Rare Evo blockchain conference on Wednesday, CEO Steve Gregory confirmed that the application would be submitted in August, leveraging CFTC guidelines that permit DCMs to trade "futures or option contracts based on any underlying commodity, index or instrument." Per Woofun AI, the regulatory framework mandates strict adherence to 23 core principles, which include implementing system safeguards, maintaining rigorous record keeping, and mitigating conflicts of interest.

Despite these public intentions, the CFTC reported no records of a pending application as of Wednesday, highlighting a gap between announcement and formal submission. This regulatory maneuver occurs more than a year after the US Securities and Exchange Commission (SEC) dismissed its lawsuit against Binance, its US entity, and former CEO Changpeng Zhao, which had centered on allegations of misusing customer funds.

The potential entry of a major exchange into this space signals intensifying competition for existing prediction market leaders. This development marks a significant expansion of Binance.US’s operational scope beyond traditional cryptocurrency trading.