Polymarket Plans November Relaunch in US Market After CFTC Approval

TLDR

• Polymarket is preparing to relaunch trading services in the United States by the end of November, starting with limited access focused on sports betting markets.
• The company was banned from US operations in 2022 after settling with the CFTC for $1.4 million for running an unregistered derivatives platform.
• Polymarket acquired QCX, a CFTC-registered exchange and clearinghouse, which provides a legal pathway to operate in the US market.
• The platform was valued at $1 billion in June 2024 following a $200 million funding round, with reports suggesting a potential $10 billion valuation if US markets reopen.
• The CFTC issued a no-action letter to QCX in September, allowing Polymarket to move forward with US expansion plans.

Polymarket is preparing to return to the United States market in November. The crypto-based prediction platform plans to offer limited trading access to US residents before the month ends.

The company will start with sports betting markets. This marks a return after three years of operating offshore following regulatory action.

In 2022, Polymarket paid a $1.4 million fine to the US Commodity Futures Trading Commission. The CFTC charged the company with running an unregistered derivatives platform and required it to block US users.

The platform continued operating internationally during this period. US residents could still access Polymarket through virtual private networks, though this violated the settlement terms.

Polymarket made a key move earlier this year by acquiring QCX. The firm holds both exchange and clearinghouse licenses from the CFTC.

This acquisition created a legal pathway for US operations. The CFTC issued a no-action letter to QCX in September, clearing the way for the relaunch.

Path to US Market Return

CEO Shayne Coplan announced the company’s plans to “go live in the USA” after the regulatory approval. The platform’s website now displays a waitlist for US traders.

Polymarket raised $200 million in June 2024. The funding round valued the company at $1 billion.

Reports from September suggested the valuation could reach $10 billion with US market access. The company has also announced plans to issue a native crypto token.

Competition in Prediction Markets

Polymarket faces competition from other prediction platforms. Kalshi operates a CFTC-regulated prediction market that recently won a legal battle against the regulator.

The CFTC had ordered Kalshi to stop offering political event contracts in 2023. Kalshi appealed and won, which may have helped clear the path for other platforms.

Trump Media and Technology Group announced plans to enter the prediction market space. The company will offer prediction markets through Truth Social in partnership with Crypto.com.

Polymarket runs entirely on blockchain infrastructure. The platform uses stablecoins for trading, unlike some competitors that use traditional payment methods.

Federal investigations from both the CFTC and Justice Department into Polymarket have been closed. The company continues to build its platform while preparing for the US launch.

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