Key Takeaways
- Polymarket is set to launch US operations after the CFTC issued a no-action letter regarding event contracts.
- The company’s $112 million acquisition of QCEX’s holding company establishes Polymarket US and Polymarket Clearing for regulated prediction contract trading.
Polymarket CEO Shayne Coplan said the Commodity Futures Trading Commission’s (CFTC) recent no-action letter on event contracts provides the regulatory clarity needed for the platform to go live in the US.
In a statement praising the regulator, he described the process as completed in record time and called it a breakthrough in bringing Polymarket’s markets to American users.
On Wednesday, the CFTC’s Division of Market Oversight and Division of Clearing and Risk said they would not recommend enforcement action against QCX LLC, a designated contract market, and QC Clearing LLC, a derivatives clearing organization, over certain swap-related compliance issues.
The federal commodity regulator noted that the relief is conditional and limited in scope, applies only in specified circumstances, and is consistent with past CFTC no-action positions for other exchanges and clearinghouses.
Polymarket acquired these two CFTC-licensed entities for $112 million in July. Now rebranded as Polymarket US and Polymarket Clearing, they provide the regulated exchange and clearing framework for Polymarket’s US platform.
The acquisition followed the US Justice Department and Commodity Futures Trading Commission’s closure of their investigations into the company’s compliance issues. Coplan called the move a path “home,” allowing Americans to legally trade prediction contracts.
Polymarket is backed by Donald Trump Jr., President Trump’s son. Trump Jr.’s venture capital fund 1789 Capital made an investment in the company. Alongside the financial commitment, he will join the Polymarket advisory board.
Source: https://cryptobriefing.com/polymarket-us-launch-cftc/
