Polymarket Set to Make a Comeback in the U.S. Following CFTC Approval

Polymarket, a prominent prediction platform, has received the green light from the Commodity Futures Trading Commission (CFTC) to re-enter the U.S. market after a three-year hiatus. This move comes after the company acquired QCEX, allowing it to operate legally within the U.S. The CFTC's no-action letter signifies that the platform can safely resume its operations without facing enforcement actions for specific contract reporting requirements.

Key Takeaways

Polymarket has been cleared to return to the U.S. after a three-year hiatus following a CFTC no-action letter.
The platform recently acquired QCEX for $112 million, providing it with the necessary licensed infrastructure.
The CFTC will not pursue enforcement against Polymarket for certain reporting requirements, facilitating its re-entry.
CEO Shayne Coplan confirmed that the approval was obtained in record time.
Polymarket is currently preparing for its U.S. relaunch, although no official date has been set.

Polymarket secures U.S. return with CFTC greenlight

Polymarket's Path to U.S. Re-Entry

Polymarket is officially poised to return to the United States after receiving regulatory approval from the CFTC. On September 3, the CFTC's Division of Market Oversight and Division of Clearing and Risk issued a no-action letter that applies to QCX LLC, a designated contract market, and QC Clearing LLC, a derivatives clearing organization.

In July, Polymarket acquired QCEX for $112 million, granting it control over both QCX and QC Clearing. This acquisition provided the necessary legal infrastructure for Polymarket to operate in the U.S. market, paving the way for its comeback.

The CFTC's no-action letter confirms that the regulatory body will not take action against QCX, QC Clearing, or their participants regarding specific swap data reporting and recordkeeping obligations related to event contracts. While this relief specifically applies to binary options and variable payout contracts executed on QCX and cleared through QC Clearing, it provides Polymarket with the legal framework it needs to resume operations in the U.S. The Commission also stated that this treatment aligns with no-action relief granted to other U.S.-regulated exchanges and clearinghouses, further validating the legitimacy of this plan.

Shortly after the announcement was made, Polymarket’s founder and CEO, Shayne Coplan, confirmed that the platform had received CFTC approval to restart its U.S. operations. He commended the CFTC and its staff for their swift handling of the process, noting that the approval came in record time.

“Polymarket has been given the green light to go live in the USA by the CFTC. Credit to the Commission and Staff for their impressive work. This process has been accomplished in record timing,” Coplan stated.

Background on Polymarket

Rumors about Polymarket’s plans to return to the U.S. had been circulating for months. The platform had previously exited the U.S. market in 2022 due to a $1.4 million settlement with the CFTC over unregistered event contracts, which restricted its ability to serve American users.

In 2024, the Department of Justice initiated a separate investigation concerning the platform's behavior related to predictions for the presidential election. This included an FBI raid on Coplan’s home to explore whether the platform had allowed illegal trading in violation of the ban. However, by July, both the CFTC and the Department of Justice had closed their investigations, clearing the company of any wrongdoing. That resolution, along with its acquisition of QCEX, indicated that Polymarket was ready to embark on a compliant return to the U.S. market.

Polymarket also recently welcomed Donald Trump Jr. to its advisory board, who expressed his commitment to supporting the platform's U.S. return. He stated, “Polymarket is the largest prediction market in the world, and the U.S. needs access to this important platform.”

Future Prospects for Polymarket

As of now, Polymarket has not announced an official date for relaunching its U.S. services. Nevertheless, the CFTC's no-action letter represents a significant milestone in its journey back. With its regulatory challenges mostly addressed, the platform is well-positioned to resume operations in its largest potential market, where interest in event-based prediction trading is high.

CEO Coplan indicated that users should “stay tuned,” implying that preparations for the relaunch are already in motion. However, it’s essential to note that Polymarket continues to face regulatory scrutiny in other countries. In November 2024, French regulators forced the platform to block users in France, while Singapore classified it as an “illegal gambling website,” resulting in a ban in January 2025.