Polymarket Secures U.S. Regulatory Clearance for Intermediated Prediction Market Trading

• Polymarket gains full CFTC approval in the U.S. and prepares for a relaunch.
• User activity and institutional backing strengthen its momentum.

Polymarket has received approval from the US Commodity Futures Trading Commission (CFTC) to operate in the US. The authorisation allows the platform to start onboarding U.S. customers and brokerage partners.

In a recent announcement, the company revealed that it had received an amended order of designation from the CFTC. The decision authorises Polymarket to operate an intermediated trading venue that meets the full compliance requirements of federally supervised exchanges.

A U.S. Comeback That Couldn’t Be Better Timed

The authorisation follows a long rehabilitation effort by Blockratize, Polymarket’s parent company. In 2022, the CFTC ordered the platform to stop serving users in the United States and to pay a penalty for operating an unregistered derivatives venue. The company responded by reorganising its regulatory stance, including a $112 million purchase of QCX LLC and QC Clearing LLC entities that hold vital clearinghouse and derivatives exchange licenses.

With the amended designation, Polymarket can now incorporate a traditional intermediated structure. Brokerages and futures commission merchants could take on customers directly, allowing U.S. traders to tap event markets through familiar channels in the finance world.

In addition, Polymarket will implement expanded surveillance tools, market monitoring functions, and reporting requirements under Part 16. The CFTC’s decision essentially places the platform under the same level of supervision as other federally regulated exchanges.

The Countdown to Polymarket’s U.S. Revival Speeds Up

Polymarket is also awaiting a relaunch in the domestic market, where it is still in compliance and has passed operational audits. According to internal direction, a go-live window is anticipated to come before the year 2025.

Leadership has focused on being prepared for the transition. CEO Shayne Coplan stated that authorisation is a sign of a growing market environment. He also cited an amicable relationship with regulators, saying that he believes Polymarket can function within the federal system.

The approval represents a major change in regulatory attitude on prediction markets. In July, the CFTC and Department of Justice dropped investigations into whether Polymarket was doing business with U.S. customers.

Polymarket recently raised $2 billion in new capital at a $9 billion valuation and plans to conduct another round at a $12 billion valuation. This rapid rise in valuation has prompted speculation of a potential future IPO by many.

Intercontinental Exchange (ICE) has invested $2 billion, providing prediction markets with a significant impetus in the regulated finance market. There are currently more than 1.3 million traders, and market volume exceeds $18 billion. Daily active users have grown between 20,000 and almost 58,000 as there is a growing interest in event-based markets.