Polymarket has secured regulatory clearance from the Commodity Futures Trading Commission (CFTC) to resume operations in the United States, marking a major milestone for the blockchain-based prediction platform.
Regulatory Green Light
The CFTC announced on Wednesday that its Division of Market Oversight and Division of Clearing and Risk had taken a “no-action position” regarding swap data reporting and recordkeeping obligations for event contracts. The move means that the regulator will not pursue enforcement actions against QCX LLC or QC Clearing LLC, the entities facilitating Polymarket’s US operations.
The decision effectively authorizes Polymarket to operate event contracts in compliance with federal derivatives regulations through its QCX partnership.
From Settlement to Approval
Polymarket’s return comes after years of regulatory hurdles. In 2022, the platform agreed to pay $1.4 million to settle CFTC charges of running an unregistered derivatives trading platform. As part of the agreement, it ceased services for US users.
The company reentered the regulatory spotlight this year when both the CFTC and the Department of Justice concluded investigations into whether Polymarket had accepted bets from Americans without authorization. Both agencies closed their probes in July without filing charges.
Just a week later, Polymarket acquired QCX in a $112 million deal, establishing the compliance structure that ultimately paved the way for its US reentry.
Competitive Landscape
Polymarket’s regulatory approval follows last year’s court win by rival Kalshi, which secured the ability to list contracts tied to political events, including the 2024 White House race. Kalshi has since reached a $2 billion valuation after raising $185 million in funding, reflecting the growing investor appetite for prediction markets.
Polymarket has also drawn notable backers. In late August, Donald Trump Jr. joined its advisory board after his venture capital firm, 1789 Capital, made an undisclosed investment in the company.
Future Outlook
Polymarket CEO Shayne Coplan announced the news on X, praising the CFTC’s “impressive work” and highlighting the record pace at which the approval process was completed. He signaled that US operations would launch shortly, posting “stay tuned” to his followers.
The CFTC’s decision positions Polymarket to reestablish itself in the US more than three years after it was forced to block American users. With regulatory clearance secured, investor backing in place, and competitors already proving market demand, Polymarket is preparing for a high-profile return to the prediction market space.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
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