Polymarket Gains CFTC Approval For US Return As Robinhood Says Prediction Markets Are Fastest-Growing Business

Polymarket gained Commodity Futures Trading Commission (CFTC) approval to return to the US as Robinhood Markets said prediction markets are its fastest-growing businesses.

Polymarket received an Amended Order of Designation from the CFTC that allows it to operate as a fully regulated US prediction market and offer intermediated access through futures brokers and traditional trading channels, it said in a statement.

The approval brings Polymarket under the same federal regulatory framework that applies to supervised exchanges, marking a huge shift for a platform that was forced out of the US following CFTC enforcement action in 2022.

”A key milestone for permeating the US financial system,” said Polymarket CEO Shayne Coplan on X. ”This process has historically taken years… it took us 4 months.”

Prediction markets allow traders to bet on outcomes in things ranging from sporting events, to politics and more. Polymarket gained momentum in 2024 when its platform correctly predicted Donald Trump would retake the White House.

Polymarket Ceased US Operations After CFTC Action

Polymarket is one of the most dominant players in the space, but was forced out of the US market after the CFTC initiated enforcement action against the company in January 2022 for offering “event-based binary options” that qualify as “swaps” under the Commodity Exchange Act (CEA).

Polymarket was ordered to cease operating in the US and pay a $1.4 million civil penalty.

Things changed under the crypto-friendly government of President Donald Trump. Earlier this year, the platform acquired a US-licensed derivatives exchange and clearinghouse called QCX LLC, which held the necessary CFTC licenses and paved the way for Polymarket to re-enter the US market. 

Robinhood Says Prediction Markets Are One Of Its Fastest-Growing Businesses

Robinhood Markets is one of many firms moving to capitalize on the booming predictions markets. It said on Nov. 25 in a statement that since it launched its prediction markets in March in partnership with Kalshi, it has become its fastest-growing business with nine billion contracts traded by more than one million users.

It is now looking to build on the “strong customer demand” and plans to grow its investment in the space with a futures and derivatives exchange and clearinghouse, said JB Mackenzie, general manager of futures and international JB Mackenzie. 

Robinhood’s planned launch of its own futures and derivatives exchange will see the company as the controlling partner and market maker. Susquehanna International Group will serve as the its liquidity provider. 

As part of the venture, Robinhood will also acquire MIAXdx, which is a CFTC-licensed derivatives clearing organization and swap execution facility. It  expects operations for its planned exchange to begin in 2026.