US Approves Operation of Prediction Markets by Polymarket, Confirms CEO
Polymarket, the prediction market platform based in New York, has received approval from the Commodity Futures Trading Commission (CFTC) to resume operations in the United States. This follows a settlement in 2022 and the acquisition of QCX, a regulated derivatives exchange, for $112 million in July.
The CFTC's no-action letter, announced on a specific date, does not address Polymarket itself but specifies that the regulator will not initiate enforcement actions against QCX or its clearinghouse, QC Clearing, for certain reporting and recordkeeping failures. The letter also exempts Polymarket from certain recordkeeping and data reporting requirements.
Polymarket's CEO, Shayne Coplan, stated that the company can now operate in the United States under QCX's license. It is likely that Polymarket will offer up to 30 U.S. markets via QCX, although it is not immediately clear when these will be relaunched.
The acquisition of QCX was one key piece of Polymarket's strategy to return to the U.S. market. The investment deal with Donald Trump Jr, reportedly on hold for months, was also finalised during this time. Donald Trump Jr joined Polymarket's advisory board and announced an investment in the company.
Polymarket's prediction market on the 2024 U.S. presidential election accumulated nearly $3.7 billion in trading volume, and the company correctly predicted President Donald Trump's victory by a healthy margin. The company has been angling to return to the U.S. market amidst greatly loosened financial regulations.
However, it remains unclear how far-reaching today's no-action letter from the CFTC will be on Polymarket's operations. The CFTC did not immediately respond to Decrypt's request for comment on the no-action letter's effect on Polymarket broadly.
