The US Commodity Futures Trading Commission has granted regulatory relief to Polymarket’s newly acquired entities, clearing the way for the prediction market platform to resume US operations. The CFTC issued a no-action letter to QCX LLC and QC Clearing LLC, allowing them to offer event contracts without meeting standard data reporting requirements.
The no-action letter covers swap data reporting and recordkeeping regulations for event contracts. This means Polymarket can operate without reporting transaction data to swap data repositories or maintaining certain financial records typically required under US regulations.
QCX obtained its CFTC license in July 2024 before Polymarket acquired it later that month for $112 million. The acquisition included both a derivatives exchange and clearinghouse, giving Polymarket the regulatory framework needed to return to US markets.
The company was previously forced to exit US markets in 2022 after paying a $1.4 million fine. The CFTC had determined Polymarket operated an “illegal unregistered or non-designated facility” at that time.
The CFTC’s decision reflects a broader change in regulatory approach under the Trump administration. Acting Chairman Caroline Pham has criticized the agency’s previous stance, saying it had gotten stuck in a “sinkhole of legal uncertainty” while pursuing legal cases against the prediction market industry.
The Securities and Exchange Commission has also dropped several investigations and lawsuits against crypto companies in recent months. This represents a departure from the enforcement-heavy approach taken under former SEC Chair Gary Gensler.
Brian Quintenz, Trump’s nominee to lead the CFTC, has expressed support for binary event contracts. As a board member of rival platform Kalshi, Quintenz has described these contracts as appropriate “hedging tools” during Senate testimony.
Under the no-action letter, event contracts must remain fully collateralized. Market participants cannot clear contracts through third-party clearing members, maintaining direct oversight of transactions.
The relief is temporary and does not exempt QCX from overall regulatory compliance. The CFTC staff noted their position aligns with previous no-action letters for binary options and similar financial instruments.
Polymarket has emerged from federal investigative interest that followed the 2024 US elections. Authorities had been examining trades from US-based users but closed their investigations in July 2025.
The prediction market sector has grown rapidly as regulatory clarity has improved. Both Polymarket and competitor Kalshi have expanded their operations and user bases throughout 2024 and 2025.
Donald Trump Jr. joined Polymarket’s advisory board in August 2024, further cementing the platform’s connections to the current administration. The regulatory approval represents a key milestone in Polymarket’s return to US markets after a three-year absence.
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