- After three years of exit Polymarket re-enters the US market with CFTC approval.
- Amended Order of Designation is issued to operate an intermediated trading platform.
- Approval allows direct customer onboarding, trading through commission merchants.
Polymarket announced Tuesday that the Commodity Futures Trading Commission granted approval for the prediction market to return to the United States through a regulated exchange framework. The CFTC issued an Amended Order of Designation that permits intermediated trading platform operations.
The approval allows Polymarket to bring brokerages and customers onto its platform directly. Users will access trading through Futures Commission Merchants, commonly known as FCMs. The company must comply with the Commodity Exchange Act and all CFTC regulations that govern Designated Contract Markets.
Company Returns After Three-Year US Exit
The development is a turnaround from 2022 when the CFTC ordered Polymarket to exit the American market. The agency imposed a $1.4 million fine on the company for running an unregistered derivatives facility. The settlement forced Polymarket to cease U.S. operations for more than three years.
Polymarket acquired QCX LLC and QC Clearing LLC in July 2024 for $112 million. Both entities hold CFTC licenses, providing the company with a regulated pathway back to U.S. markets. The CFTC and Department of Justice dropped ongoing investigations of Polymarket days before the acquisition closed. Polymarket founder and CEO Shayne Coplan stated,
“This approval allows us to operate in a way that reflects the maturity and transparency that the U.S. regulatory framework demands. We’re grateful for the constructive engagement with the CFTC and look forward to continuing to demonstrate leadership as a regulated U.S. exchange.”
Strategic Partnerships Position Platform for Growth
PrizePicks and Polymarket announced a multi-year partnership earlier this month in preparation for the U.S. return. PrizePicks operates as one of the few sports entertainment platforms registered as an FCM with the National Futures Association.
QCEX filed self-certification documents with the CFTC last month indicating plans to offer sports-related contracts. The filings covered moneyline and point spread products along with election winner contracts.
Intercontinental Exchange, which owns and operates the New York Stock Exchange, announced a $2 billion strategic investment in Polymarket in October. The deal values Polymarket at approximately $8 billion before the investment. ICE will serve as the global distributor of Polymarket’s event-driven data under the agreement.
Donald Trump Jr. joined Polymarket’s advisory board in August following an investment from his venture capital fund 1789 Capital. Coplan stated at the time that collaboration between established market operators and new platforms would drive development in tokenization and trading infrastructure.
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