Polymarket Wins CFTC Approval for US Return

The Commodity Futures Trading Commission has officially approved Polymarket to operate as an intermediated contract market platform in the United States, allowing the crypto-backed prediction market to onboard American customers immediately. This regulatory greenlight represents a dramatic turnaround for a company that was pushed offshore nearly four years ago for allegedly failing to comply with existing regulations. The approval comes in the form of an Amended Order of Designation from the CFTC, which effectively reverses the company’s 2022 exit from the American market.

This regulatory victory follows Polymarket’s July acquisition of a CFTC-regulated American derivatives exchange, a strategic move that positioned the company for its eventual return to the US market. The platform’s re-entry has been expected for some time, particularly since the CFTC and Department of Justice dropped investigations into Polymarket in July that focused on whether the company was still doing business with US customers. The approval now permits Polymarket to work directly with intermediary merchants and other key elements of the American futures market infrastructure.

Polymarket’s journey back to the US market stands in stark contrast to its 2022 departure, when the company paid a $1.4 million fine for operating a futures contract platform without proper licensing. Despite continuing to be based in New York City, the prediction market was forced to exit the American market following the regulatory action. The $1.4 million penalty represented a significant setback for the company at the time, forcing it to operate primarily offshore while maintaining its headquarters in the United States.

Since 2022, Polymarket has cultivated increasingly close relationships with America’s political and cultural power centers. In a notable development this August, the president’s son, Donald Trump Jr., became both an investor in the platform and a member of its advisory board. This high-profile endorsement came as the Trump administration’s CFTC adopted a far more lax approach to regulating prediction markets, even as such platforms face increasing legal scrutiny for encroaching on established sectors like sports betting.

Polymarket’s regulatory approval coincides with a period of unprecedented growth and mainstream acceptance for the prediction market platform. Throughout the second half of this year, the company has announced flashy partnerships with major technology and sports organizations, including X, Google, the NHL, and the UFC. These strategic alliances have provided the platform with significant mainstream exposure and credibility, helping to drive user adoption and trading activity to new heights.

The combination of regulatory clarity and high-profile partnerships has propelled Polymarket to record trading volumes this fall, with the platform eclipsing $1 billion in trading volume in a single month. This surge in activity demonstrates both the growing acceptance of prediction markets and the pent-up demand among American users for platforms that allow them to bet on real-world outcomes using cryptocurrency. The platform’s ability to now legally serve US customers positions it to capture a substantial portion of this emerging market.