Polymarket to resume U.S. operations following $112M acquisition of QCEX exchange

Polymarket is returning to the U.S. after closing a $112 million acquisition of QCEX, a derivatives exchange and clearinghouse licensed by the Commodity Futures Trading Commission.

The deal, announced July 21, grants Polymarket access to a fully regulated path back into the U.S. market after more than two years operating abroad due to regulatory hurdles. QCEX, based in Boca Raton, Florida, holds both a designated contract market and derivatives clearing organization license.

By acquiring its parent company, Polymarket now inherits the regulatory infrastructure required to offer event-based markets in the U.S. in full compliance with federal derivatives law. This move represents a significant strategic shift for the company.

After a $1.4 million settlement with the CFTC, Polymarket was forced to block U.S. users in January 2022. The platform provided unregistered event-based binary options, which the agency classified as swaps. Many U.S. users continued to use VPNs to access the website even though they could only view markets in “read-only” mode.

Despite its U.S. regulatory exit, Polymarket has rapidly expanded globally and is now the largest prediction market platform in the world. Users have bet billions on political, cultural, and cryptocurrency-related outcomes over the last year, pushing the trading volume to nearly $15 billion. 

Its odds-based forecasts, particularly for the 2024 U.S. presidential election, gained traction as more accurate and real-time alternatives to traditional polling.

The acquisition follows news that the CFTC and U.S. Department of Justice had closed their investigations into Polymarket without filing charges earlier in July. That regulatory closure, combined with the QCEX deal, clears a path for the platform to legally serve U.S. users for the first time since 2021.

“Demand is greater than ever,” said Polymarket founder Shayne Coplan in the announcement. “Now, with the acquisition of QCEX, we are laying the foundation to bring Polymarket home.”

The return comes amid broader shifts in the U.S. regulatory environment. The CFTC, under new leadership, has shown openness to prediction markets. In addition, recent crypto legislation such as the GENIUS Act signals a more defined federal approach to digital asset platforms.

Still, there are some difficulties. Prediction markets may face opposition at the state level because some U.S. states consider them to be gambling. However, now that it has a regulated exchange under its control, Polymarket is in a better position than ever to negotiate that environment with more legal certainty.