Polymarket, a prominent player in the prediction market sector, has received an amended order of designation from the Commodity Futures Trading Commission (CFTC). This approval allows the company to operate a federally regulated trading platform in the United States, marking a significant step in its efforts to re-enter the U.S. market.
The amended order enables Polymarket to directly onboard brokerages and customers, facilitating trading through future commission merchants. This development follows Polymarket’s acquisition of QCX LLC and QC Clearing LLC in July 2023, which positioned the company to expand its operational capabilities significantly. The partnership with PrizePicks, announced earlier this month, further enhances Polymarket’s reach as it prepares for its U.S. relaunch.
In a press release on August 29, 2023, Polymarket CEO and founder Shayne Coplan expressed gratitude for the constructive engagement with the CFTC, stating, “People rely on Polymarket because we provide clarity where there is confusion and accountability where there is ambiguity. This approval allows us to operate in a way that reflects the maturity and transparency that the U.S. regulatory framework demands.”
The CFTC’s order allows Polymarket to offer contracts related to sporting events and elections, catering to users looking for a regulated environment to place their predictions. This approval is particularly timely, considering the growing interest in sports betting and prediction markets across the nation.
Polymarket’s return to the U.S. market has been bolstered by the current administration’s efforts to relax regulatory frameworks surrounding cryptocurrency and digital assets. Earlier this month, QCEX, a subsidiary, filed self-certification documents with the CFTC, indicating its intent to offer sports-related moneyline and point spread contracts, alongside election winner contracts.
Several major sports leagues have recognized the potential of Polymarket’s platform. The National Hockey League (NHL) has signed partnership agreements with both Polymarket and competitor Kalshi, while the Ultimate Fighting Championship (UFC) has designated Polymarket as its official and exclusive prediction market. This collaboration underscores the increasing integration of prediction markets within the sports industry.
As Polymarket prepares for its U.S. relaunch, the company aims to lead as a regulated exchange, providing users with the tools to engage in predictive trading with confidence. The focus on regulatory compliance and consumer protection is expected to enhance the platform’s credibility among users and investors alike.
Polymarket, which has not officially operated in the U.S. since 2022, is poised to make a significant impact on the prediction market landscape. With the recent regulatory approval and strategic partnerships, it is well-positioned to attract a wide range of participants seeking a transparent trading environment.
