Polymarket Cleared for U.S. Relaunch After CFTC Approval

​Prediction market operator Polymarket is set to resume business in the United States after receiving a no-action letter from the Commodity Futures Trading Commission (CFTC). The move ends a three-year absence from the U.S. market following a regulatory settlement in 2022.

The CFTC's decision allows Polymarket to operate legally through QCX, a derivatives exchange it purchased earlier this year for $112 million. The regulator confirmed it would not pursue enforcement on certain reporting and recordkeeping obligations that usually apply to derivatives platforms, effectively opening the door for Polymarket's return.

Polymarket CEO Shayne Coplan welcomed the decision, writing on X: "Polymarket has been authorized to launch in the USA by the CFTC. Kudos to the Commission and Staff for their remarkable efforts. This achievement has been realized in record time."

The relaunch comes as event contracts have surged in popularity, particularly during the 2024 election cycle when traders wagered on political outcomes with real money. Polymarket had continued to grow abroad during its U.S. absence, allowing non-American users to bet on everything from presidential races to sports championships.

While approval marks a milestone, event contracts remain controversial. Some regulators view them as a form of unregulated gambling, while others compare them to binary options, which are banned in Europe due to their gambling-like nature. Supporters, however, argue that prediction markets can provide more accurate insights than polls by requiring traders to commit capital to their forecasts.

The broader sector has drawn strong investor interest. Rival Kalshi recently secured a $2 billion valuation following a $185 million funding round led by crypto investment firm Paradigm, with backing from Sequoia Capital and Citadel Securities CEO Peng Zhao. Meanwhile, Robinhood and Interactive Brokers have both introduced event contracts, and CME Group partnered with FanDuel to offer sports-focused versions starting at just $1.

Polymarket's comeback also follows new political ties. Donald Trump Jr.'s venture firm, 1789 Capital, invested in the company shortly before its U.S. approval, linking the platform's future to the same prediction markets that correctly called the 2024 presidential race.

Whether prediction markets will evolve into a mainstream financial product or remain on the fringes as speculative entertainment is still uncertain. But with Polymarket's reentry and rival platforms expanding rapidly, the U.S. market is once again becoming a testing ground for this controversial form of trading.